Low-income Countries : Strides Of IMF On Debt Burden

As the world battles to contain the dreaded Coronavirus (Covid-19), principally to at least cut the propagation chain and attempt saving the lives of those already infected, there are concerted efforts to make resources available for the challenging task. If the situation is difficult for resource-rich countries, it becomes even more precarious for low-income countries. Reason why each step taken to make the resources available is the more laudable. 
Among the multifaceted moves is the April 15, 2020 decision of the Executive Board of the International Monetary Fund (IMF) to approve an Immediate Debt Service Relief for 25 Eligible Low-income countries. This is within the framework of what the IMF qualifies as “Catastrophe Containment and Relief Trust (CCRT).” It is announced that a further four countries are expected to request such relief in the coming weeks to take the number to 29. Beneficiaries of the IMF debt service relief include Afghanistan, Benin, Burkina Faso, Central African Republic and others.
According a press release announcing the IMF measure, “The approval enables the disbursement of grants from the CCRT for repayment of total debt service falling due to the IMF over the next six months, with potential extensions, up to a maximum of full two years from April 14, 2020, subject to availability of sufficient grant resources.” The initial relief provided to these countries, the release notes, amounts to US$213.4 million and relief on debt service will free up scarce financial resources that now can be directed toward vital emergency medical and other relief efforts while the members combat the impact of the virus.
The laudable move is sequel to the IMF’s view that “the COVID 19 pandemic is a Qualifying Public Health Disaster under the Catastrophe Containment and Relief Trust (CCRT) that is ...