Malawi gets IMF debt relief to address impact of Covid-19 crisis

The International Monetary Fund (IMF) has approved immediate debt service relief for Malawi and other 24 impoverished countries to help them address the impact of the coronavirus (Covid-19) pandemic.

Ms. Kristalina Georgieva, Managing Director of IMF: Debt relief will help Malawi channel more of their scarce financial resources towards vital emergency medical and other relief efforts

“This provides grants to our poorest and most vulnerable members to cover their IMF debt obligations for an initial phase over the next six months and will help them channel more of their scarce financial resources towards vital emergency medical and other relief efforts,” IMF Managing Director Kristalina Georgieva said in a statement.

The CCRT will currently provide about US$500 million in grant-based debt service relief, with US$185 million of that money coming from a pledge by the U.K. and US$100 million being provided by Japan.

Georgieva said countries such as China and the Netherlands are also stepping forward with important contributions.

“I urge other donors to help us replenish the Trust’s resources and boost further our ability to provide additional debt service relief for a full two years to our poorest member countries,” she said.

Apart from Malawi, the beneficiary countries include  Afghanistan, Benin, Burkina Faso, Central African Republic, Chad, Comoros, Democratic Republic of Congo, The Gambia, and Guinea.

Other countries are Guinea-Bissau, Haiti, Liberia, Madagascar,  Mali, Mozambique, Nepal, Niger, Rwanda, Sao Tome and Principe, Sierra Leone, Solomon Islands, Tajikistan, Togo, and Yemen.

Last month, the IMF and the World Bank Group issued a joint call urging creditors to suspend debt payments of the world’s poorest countries.

United Nations Secretary-General Antonio Guterres also urged the suspension of debt repayments for the world’s poorest and most vulnerable countries so they can use their scant resources for the coronavirus crisis.

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Nasingwe
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Nasingwe

timadabwatu imakhala ngati apanga izi ndi RBM yet the news is saying IMF has done ot to 24 countries plus Malawi. amati atinamize a RBM . pano zaveka

Mpakateni
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Zikhala zochitra kampeni ya chisankho chikubwerachi. We need the money for health education to the rural communities as part of preventive measures. Public awareness will be the only way to address the coronavirus challenge.

K.kagalu.
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K.kagalu.

This is very true, people in the villages doesn’t know exactly what lockdown means, because they don’t travel long distances, all they know is kukapempha mchere kwa Onangondo, what is it going to do with them by saying lockdown? So the best is what you have said,, mobilization of public health service awareness could be a big deal, but unfortunately the money is going into the pocket of few people and will be used for campaign. My Malawi

Mtondowodoka
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