Mozambique receives Covid-19 debt service relief from IMF

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Mozambique receives Covid-19 debt service relief from IMF

2:16 CAT | 31 Dec 2021

Photo: in file CoM

The International Monetary Fund (IMF) has provided debt service relief for Mozambique to help it cope with the effects of the Covid-19 pandemic, covering repayments of 55 million US dollars.

The relief came in four tranches: the first between April and October 2020 was for just under 15.25 million US dollars, followed by three equal amounts of 13.23 million US dollars.

The funding is part of the IMF’s response to the Covid-19 pandemic, under which debt service relief has been given to 31 countries through the Catastrophe Containment and Relief Trust (CCRT), with a cumulative relief of 964 million US dollars.

According to a statement from the IMF on 20 December, this “helps free up scarce financial resources for vital health, social, and economic support to mitigate the impact of the Covid-19 pandemic”.

It adds that the IMF’s Directors “appreciated the generous support” from those that funded the relief: the European Union, United Kingdom, Japan, Germany, France, Netherlands, Spain, Switzerland, Norway, Singapore, Greece, China, Mexico, Philippines, Sweden, Bulgaria, Luxembourg, Malta, and Indonesia.

In March 2020, the IMF approved changes to the CCRT to enable it to provide grants for debt service relief to its poorest and most vulnerable members for up to a maximum of two years from April 14 2020, in response to the Covid-19 pandemic.

Source: AIM