Why the IMF Excluded Nigeria from the List of Countries Receiving Debt Relief |

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva announced that the Fund would provide $ 500 million in debt service relief in the form of grants to 25 countries.

The 25 beneficiaries include Afghanistan, Benin, Burkina Faso, Central African Republic, Chad, Comoros, Congo, DR, Gambia, Guinea, Guinea-Bissau, Haiti, Liberia, Madagascar, Malawi, Mali, Mozambique, Nepal, Niger, Rwanda, São Tomé and Príncipe, Sierra Leone, Solomon Islands, Tajikistan, Togo and Yemen.

“Today, I am pleased to say that our Board of Directors has approved immediate debt service relief to 25 of the IMF’s member countries under the Containment and Disaster Relief Trust Fund (CCRT ) IMF overhauled as part of the Fund’s response to help cope with the impact of COVID. -19 pandemic ”, IMF Managing Director Kristalina Georgieva said.

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According to Georgieva, the relief was provided to the poorest and most vulnerable members to cover their obligations to the IMF during an initial phase over the next six months. She noted that the fund would help them channel more of their scarce financial resources into emergency medical aid and other relief efforts.

[READLASUITE:[READMORE:[LIRELASUITE:[READMORE:Nigeria’s external debt has crossed a 15-year threshold)

She then urged donors help the Fund replenish the resources of the Trust Fund and strengthen its capacity to provide additional debt service relief for two full years to the poorest IMF member countries.

IMF building

Recall that the IMF had disclosed the recent UK commitment of US $ 185 million as well as US $ 100 million provided by Japan under the CCRT.

Nigeria’s exclusion from the list has become a topic of discussion in the media space, as many are already concerned about the country’s debt portfolio and the reluctance of international organizations to provide relief in this time of the pandemic. coronavirus.

What you should know: Nigeria has never been among the countries indebted to the IMF. Contrary to the news that is going viral, the exclusion of Nigeria from the list should never have been debated as the West African country is not beholden to the Fund.

It is relevant to note that the novel Coronavirus is blocking economies globally, plunging different countries into an emergency. It is with this in mind that the IMF relieves them of their debts in order to help them support and supplement their efforts to revive their economies.

Debt relief will help countries make progress towards the achievement of the United Nations Millennium Development Goals, which aim to halve poverty by 2015. Debt of developing countries is identified as one. of the main causes of poverty, causing human suffering and misery as well as an obstacle to economic development.

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