The IMF Executive Board has approved immediate debt service relief to 19 African states (IMF’s member countries) under the IMF’s revamped Catastrophe Containment and Relief Trust (CCRT) as part of the Fund’s response to help address the impact of the COVID-19 pandemic.
Though all CEMAC countries are facing economic shocks emanating from the virus, only Chad and the Central African Republic saw their debts wiped off by the IMF. The other countries of the sub-region will have to depend on other avenues to mitigate the slump caused by the pandemic.
“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,” the IMF Managing Director Kristalina Georgieva explains.
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. Others, including China and the Netherlands, are also stepping forward with important contributions.
Georgieva has urged rich nations to “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.”
