Countries have faced a huge setback to their economies due to the coronavirus pandemic and the International Monetary Fund (IMF) has said that it will provide debt relief to 25 member countries under its Catastrophe Containment and Relief Trust (CCRT) to help them fight the on going crisis.
The Managing Director of IMF Kristalina Georgieva said that the first batch of countries has been approved by the fund’s executive board so that they can cover their debt service obligations to the fund for an initial six months.
According to the managing director the CCRT had about $500 million in resources on hand and other countries are also pledging significant amounts which include $185 million from Britain, $100 million from Japan and China too however, the amount is still undisclosed.
The 25 member countries approved would get $215 million in total over the next six months with possible extensions according to the International Monetary Fund (IMF).
IMF Managing Director Kristalina Georgieva said in a statement:
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 has urged other donor countries to contribute to the CCRT fund so that the IMF can provide relief to poor member countries over the next two years.
The first batch of countries to get the debt relief includes: