The Executive Board of the International Monetary Fund (IMF) yesterday, April 13, approved immediate debt service relief for 25 countries, including Rwanda. The relief is in the form of grants of approximately $500 million.
“I am pleased to announce that our Executive Board has approved immediate debt service relief for 25 IMF member countries under the revamped Disaster Assistance and Response Trust Fund. “said Kristalina Georgieva, Managing Director of the IMF.
“Our poorest and most vulnerable member countries will thus receive donations. These will cover their obligations to the IMF for an initial six-month phase. “She added. This measure is being taken to allow these countries to devote their scarce financial resources to health care. But also to other vital emergency relief efforts. This will allow them to deal with the consequences of the covid-19 pandemic.
So far two countries have given their contributions to this trust fund. They are the United Kingdom and Japan. China and the Netherlands are also preparing to make significant contributions. The IMF is seeking the support of other donors to replenish the Trust Fund. In this way, the poorest countries could benefit from additional debt service relief of up to two years.
Gérard Rugambwa
