IMF enhances relief to support low-income countries in fight against COVID-19.

Washington -- In direct response to the COVID-19 crisis, the International Monetary Fund (IMF) Executive Board has adopted some immediate enhancements to its Catastrophe Containment and Relief Trust (CCRT) to enable the Fund to provide debt service relief for its poorest and most vulnerable members. The CCRT enables the IMF to deliver grants for debt relief benefitting eligible low-income countries in the wake of catastrophic natural disasters and major, fast-spreading public health emergencies.

The COVID-19 outbreak and the associated global economic turmoil creates a critical need to support the Fund's membership, including exceptional balance of payments support for the poorest members especially impacted by the pandemic. Well-targeted support will allow these countries to prioritize medical spending and health-related as well as other immediate needs in the challenging economic environment, characterized by sharp declines in income, lost revenue and higher expenses.

In that context, the IMF Executive Board has approved changes to the CCRT that expand the qualification criteria to better cover the circumstances created by a global pandemic and to focus on delivering support for the most immediate needs. Specifically, the decision will allow all member countries with per capita income below the World Bank's operational threshold for concessional support to qualify for debt service relief for up to two years. This would apply when a life- threatening global pandemic is...