IMF offers debt relief for poor countries

Harare, (New Ziana) – The International Monetary Fund (IMF) on Tuesday approved immediate debt relief for 25 poor countries,mostly in Africa to allow them to direct funding towards the fight against Covid-19.

IMF managing director, Kristalina Georgieva, said the relief had been
provided under the IMF’s Catastrophe Containment and Relief Trust (CCRT).

“This provides grants to our poorest and most vulnerable members to cover their IMF debt obligations for an initial phase over the next six months and will help them channel more of their scarce financial resources towards vital emergency medical and other relief efforts,” she said.

The CCRT was established in 2015, broadening the IMFs disaster
assistance framework to allow the institution to join international debt relief efforts when poor countries are hit by natural disasters or public health disasters.

The 25 countries that will receive debt relief are: Afghanistan,Benin, Burkina Faso, Central African Republic, Chad, Comoros, Congo,Democratic Republic of Congo, The Gambia, Guinea and Guinea-Bissau.

Haiti, Liberia, Madagascar, Malawi, Mali, Mozambique, Nepal, Niger, Rwanda, São Tomé and Príncipe, Sierra Leone, Solomon Islands, Tajikistan, Togo, and Yemen.

Zimbabwe, which cleared its arrears to the IMF in 2016, did not qualify under the facility.

“This facility provides grants to cover upcoming debt services to the
IMF. Now given that Zimbabwe’s debt to the IMF is zero, there is no
debt service to pay hence this facility would not be of any use,” the
IMF resident representative to Zimbabwe, Patrick Imam was quoted as
saying.

“We are therefore exploring alternative funding facilities.”

Georgieva said with more financial support, the IMF could extend the
facility for up to two years.

“The CCRT can currently provide about US$500 million in grant-based debt service relief, including the recent US$185 million pledge by the U.K. and US$100 million provided by Japan as immediately available resources,” she said.

“Others, including China and the Netherlands, are also stepping forward with important contributions. I urge other donors to help us replenish the Trust’s resources and boost further our ability to provide additional debt service relief for a full two years to our poorest member countries.”
New Ziana