COVID-19: 40 sub-Saharan African countries seek emergency support from IMF

0
113

As of June 3rd, 2020 between 35 and 40 Sub-Saharan African countries have made a request for emergency assistance from the International Monetary Fund (IMF), Mr Gerry Rice, Director of Communications at the (IMF), has announced.

Out of that number, 27 countries so far have received financing from the Fund he said, adding that these countries have received the support, for a total of about USD10 billion.

Answering about the IMF’s financial assistance to Sub-Saharan Africa, and how substantial has that assistance been, Mr Rice said : “What I can tell you is that to help Sub-Saharan Africa address this crisis, the IMF is providing emergency financing assistance, on what I characterize as an unprecedented scale.

“So what does that mean? As of June 3rd, yesterday, between 35 and 40 Sub-Saharan African countries have made a request for emergency assistance from the IMF, and 27 countries so far have received financing from the Fund. They have received it, for a total of about USD10 billion.

“Again, already disbursed, and without IMF traditional conditionality. More is planned in the coming weeks, so this 10 billion number that I just gave, this is actually about 10 times more than what we have been disbursing to the region on average, on an annual basis our average disbursement in the past has been about 1 billion per year, and already halfway through this year we have disbursed 10 billion, with more to come. So that gives some perspective on what we’re doing.

“Additionally, 19 Sub-Saharan Africa countries have received debt relief under our Catastrophe Containment and Relief Trust which provides debt relief on IMF payment obligations from countries.

“And that’s been 27 countries as I said, totally, 19 for Sub-Saharan Africa, and that’s been for a total of 204 million. More broadly, we are exploring ways to deploy our Special Drawing Rights, to support low-income and small economies, including those in Sub-Saharan Africa.

“And together, as I just mentioned, with The World Bank, that we are supporting this Debt Service Suspension Initiative from which many Sub-Saharan African countries can benefit.

“And of course we are urging other development partners to do more, certainly more needs to be done by all of Africa’s partners, complementing the efforts of African countries themselves.

“And as I said, I mean, in a nutshell, the IMF for its part is making an unprecedented effort in Sub-Saharan Africa.”

Source: Laudbusiness.com/Ghana

LEAVE A REPLY

Please enter your comment!
Please enter your name here