IMF Approves Aid for World’s 28 Poorest Countries

On Monday, the International Monetary Fund ( IMF) approved new emergency assistance for 28 of the poorest countries in the world to help them minimize their debt and better deal with the effects of the coronavirus pandemic.

The announcement, which follows a similar measure introduced in mid-April for 25 nations, is intended to help countries pay off their debt payments to the IMF for the next six months and to "free up scarce financial resources for critical emergency medical and other relief efforts" during the pandemic, reports BSS.

The 28 countries receiving the second tranche of assistance include Afghanistan, Benin, Burkina Faso, Burundi, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Liberia, Madagascar, Malawi, Mozambique, Nepal, Niger, Rwanda, Sao Tome and Principe, Sierra Leone, Solomon Islands, Tajikistan, Tanzania, Togo and Yemen.

Mali is also eligible for aid but has not yet been added to the list because “there is a lack of clarity as to whether the international community recognizes/deals with the current military regime as the government of Mali,” the IMF said.

Debt relief is channeled through the Catastrophe Containment and Relief Trust (CCRT), which allows the IMF to provide grants to the poorest and most vulnerable countries impacted by a natural disaster or public health crisis.

Subject to appropriate resources in the CCRT, grants for a two-year duration up to mid-April 2022 may be awarded for an approximate total amount of $959 million.

The IMF’s goal is to endow the CCRT with $1.4 billion so that it can also meet future needs.

Several countries have contributed $506.5 million to date, including the United Kingdom, Japan, Germany, the Netherlands, Switzerland, Norway, China, Mexico, Sweden, Bulgaria, Luxembourg and Malta.