Under the Catastrophe Containment and Relief Trust, the executive board of the International Monetary Fund approved a third tranche of grants for debt service relief for 28 low-income countries.
In a statement on its website on Monday, the IMF said this approval which extends debt service relief for 28 eligible low-income countries through October 15, 2021 followed two prior tranches approved on April 13, 2020 and October 2, 2020 respectively.
It enabled 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 April 14, 2021 to October 15, 2021, estimated at SDR 168 ($238m).
This tranche of grants for debt service relief would 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.
Subject to the availability of sufficient resources in the CCRT, debt service relief could be provided for the remaining period through from October 16, 2021 to April 13, 2022 amounting to a total of about SDR 680 ($964m).