The Executive Board approved relief on debt service for 25 member countries that are eligible for support from the Catastrophe Containmentand Relief Trust (CCRT); a further 4 countries are expected to request such relief in the coming weeks.
The approval enables the disbursement of grants from the CCRT for repayment of total debt service falling due to the IMF over the next six months, with potential extensions, up to a maximum of full two years from April 14, 2020, subject to availability of sufficient grant resources. The initial relief provided to these countries amounts to SDR 157.1 million (US$213.4 million). Relief on debt service will free up scarce financial resources that now can be directed toward vital emergency medical and other relief efforts while these members combat the impact of the pandemic.
The Managing Director has launched an urgent fundraising effort that would enable the CCRT to provide relief on debt service for a full two years while leaving the CCRT adequately funded for future needs. This will require a commitment of about US$1.4 billion.
Donors have already stepped up with pledges and contributions including a US$185 million pledge by the United Kingdom and US$100 million provided by Japan as immediately available resources. Other donors, including the People’s Republic of China and the Netherlands, are also stepping forward with important contributions.
Original source: IMF
Published on 15 April 2020