WASHINGTON, Oct 8 (Businesshala) – The Executive Board of the International Monetary Fund has approved a $124 million extension of IMF debt relief to 24 low-income countries through January 10, 2022, the fund said on Friday.
The IMF said the approval of the fourth tranche of debt relief from the IMF’s Disaster Control and Relief Trust provides a total relief of approximately $973 million since April 2020. The move effectively suspends debt service for eligible countries on their IMF loans for the next three months.
At the start of the COVID-19 pandemic in March 2020, the IMF began an effort to raise $1.4 billion in grants for the Disaster Trust to provide debt relief. So far, donors including the UK, Japan, Germany and other European and Asian countries have pledged some $860 million to the effort.
The Board agreed that Kyrgyzstan and Lesotho met the eligibility requirements for debt service relief and included them in the fourth tranche.
The statement issued on Friday did not name all the countries that would receive the IMF’s latest round of debt relief, but did note that Afghanistan would not be included as the fund suspended engagement with the Taliban government, which in August seized control of the country.
Past statements have named the following recipients of IMF debt relief: Afghanistan, Benin, Burkina Faso, Central African Republic, Chad, Comoros, Democratic Republic of the Congo, The Gambia, Guinea, Guinea-Bissau, Haiti, Liberia, Madagascar, Malawi, Mali. , Mozambique, Nepal, Niger, Rwanda, So Tomé and Principe, Sierra Leone, Solomon Islands, Tajikistan, Togo and Yemen. (Reporting by David Lauder Editing by Marguerite Choy)