The executive board of the International Monetary Fund (IMF) has approved a third tranche of grants for debt service relief for 28 member countries under the Catastrophe Containment and Relief Trust (CCRT) instrument.
The IMF said on Monday that the approval followed two prior tranches approved on 13 April 2020 and 2 October 2020, respectively.
It added that it enables the disbursement of grants from the CCRT for payment of all eligible debt service falling due to the IMF from its poorest and most vulnerable members from 14 April 2021 to 15 October 2021, estimated at $238 million.
This tranche of grants for debt service relief will continue to help free up scarce financial resources for vital emergency health, social, and economic support to mitigate the impact of the COVID-19 pandemic, according to the IMF.
Subject to the availability of sufficient resources in the CCRT, debt service relief could be provided for the remaining period from 16 October 2021 to 13 April 2022, amounting to a total of about $964 million, said the IMF.
In March 2020, the IMF’s managing director Kristalina Georgieva launched an urgent fundraising effort to raise $1.4 billion in grants for the CCRT, which would enable the CCRT to provide financial assistance for relief on debt service for up to a maximum of two years, while leaving the CCRT adequately funded for future needs.
Donors have pledged contributions totaling about $774 million, including from the European Union, the UK, Japan, Germany, France, the Netherlands, Switzerland, Norway, Singapore, China, Mexico, Philippines, Sweden, Bulgaria, Luxembourg, and Malta, according to the IMF.
The IMF and the World Bank's spring meetings kicked off officially on Monday that will focus on the role the accelerated vaccine roll out can have in boosting the global recovery and enhance the global growth.