This approval follows two prior tranches approved on April 13, 2020, and October 2, 2020, respectively. 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 April 14 to October 15, estimated at SDR 168 (US$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. Subject to the availability of sufficient resources in the CCRT, debt service relief could be provided for the remaining period from October 16, 2021, to April 13, 2022, amounting to a total of about SDR 680 (US$964) million.
Managing Director Kristalina Georgieva launched an urgent fundraising effort to raise SDR 1 billion (1.4 billion dollars) in grants for the CCRT in March. This 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.
Thus far, donors have pledged contributions totalling about SDR 545 million (774 million dollars), including from the European Union, the UK, Japan, Germany, France, the Netherlands, Switzerland, Norway, Singapore, China, Mexico, Philippines, Sweden, Bulgaria, Luxembourg, and Malta.