IMF makes available $50 billion to help address Coronavirus
The International Monetary Fund (IMF) is making available about US$ 50 billion through its rapid-disbursing emergency financing facilities for low income and emerging market countries that could potentially seek support.
The announcement was made by IMF Managing Director Kristalina Georgieva at Joint Press Conference with World Bank Group President David Malpass
Of this, US$ 10 billion is available at zero interest for the poorest members through the Rapid Credit Facility. Most of the money will be interest free.
In addition, countries do not need to have a pre-existing program with the IMF to participate, the statement reads.
According to the IMF press release, “The Fund has resources available to support the membership, said thanks to the generosity of our shareholders; we have about $1 trillion in overall lending capacity.
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For low-income countries, we have rapid-disbursing emergency financing of up to $10 billion (50 percent of quota of eligible members) that can be accessed without a full-fledged IMF program.
Other members can access emergency financing through the Rapid Financing Instrument. This facility could provide about $40 billion for emerging markets that could potentially approach us for financial support”.
We also have the Catastrophe Containment and Relief Trust – the CCRT – which provides eligible countries with up-front grants for relief on IMF debt service falling due, IMF stated.
The CCRT proved to be effective during the 2014 Ebola outbreak, but is now underfunded with just over $200 million available against possible needs of over $1 billion.
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Meanwhile, IMF called on member countries to help ensure that this facility is fully re-charged and ready for the current crisis.”
IMF makes available $50 billion to help address Coronavirus
