The International Monetary Fund (IMF) said on Monday it would soon provide debt assistance services to 25 member states under the Catastrophe Containment and Relief Trust (CCRT). This was done to enable them to focus scarce resources on combating the corona virus pandemic.
IMF managing director Kristalina Georgieva said in a statement that the IMF Executive Board on Monday (3/4) approved the first slot of recipient countries to cover their debt obligations to the IMF for the first six months.
According to him, CCRT currently has around 500 million US dollars of resources. This includes a new guarantee of 185 million US dollars from Britain, 100 million US dollars from Japan and an undisclosed nominal from China, the Netherlands and other countries. The IMF is also working to increase the amount available to US $ 1.4 billion.
Previously, the IMF declared developing countries to be the most vulnerable in the corona virus crisis. The crisis this time is far worse than the global financial crisis a decade ago.
"The crisis is now far worse than the global financial crisis and this is a crisis that requires all to unite," said at a virtual press conference held by the World Health Organization (WHO) at its headquarters on Saturday (4/4).
Georgieva continued, emerging markets and developing economies are very vulnerable to this crisis. He stressed this problem because more than 90 countries have so far approached the IMF for emergency funding.
"Their health system is fragile, and now they are severely hit economically. The IMF gives high priority to these countries, "Georgieva said.
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