IMF sanctions debt relief for 25 countries

International monetary fund approved immediate debt relief for 25 poor countries


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IMF sanctions debt relief for 25 countries

On Monday the International monetary fund approved immediate debt relief for 25 poor countries to help them free up funds to fight against this Coronavirus pandemic.

IMF managing director Kristalina Georgieva said in a statement that this provide grant to the most vulnerable and poorest members to cover their debt for an initial phase of over six months and would help these countries to channel their financial resources to vital emergency relief efforts and other medical stuffs.

Here's 25 countries that would receive debt service relief from IMF are:Benin, Burkina Faso , Comoros , D.R., The Gambia, Guinea, Guinea-Bissau, Haiti, Congo,  Liberia ,Central African Republic, Madagascar, Malawi , Chad,  Mali, Mozambique, Nepal, Niger, Rwanda, São Tomé and Príncipe, Sierra Leone, Solomon Islands ,Afghanistan, Tajikistan, Togo, and Yemen.

The fund together with the world bank have called for other rich countries to stop collecting debt from poor countries from 1st May 2020 through June 2021 .

The debt relief for the Coronavirus will be funded by IMF's Catastrophe Containments and Relief Trust which was first set up during Ebola outbreak in 2015 and has been repurposed to help countries fight against Coronavirus pandemic .

Currently the fund has $500 million with China, Japan , Netherland and Britain among it's main contributors .

Georgieva said she urged other donors to help them replenish the trust's resources and boost further their ability to provide additional debt service relief for a period of two years to their poorest member countries .

Last week the World bank also said that it would roll out $160 billion in emergency aid over a period of 15 months to help countries affected by Coronavirus , including $14 billion in debt repayment from 76 poor countries to other government .

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