Ghana, Senegal get $1.5bn in urgent IMF support

The executive board of the International Monetary Fund has approved $1 billion in emergency funding for Ghana and $442 million for Senegal to enable both countries to respond to the rapidly-spreading coronavirus pandemic. But Nigeria remains missing in the list hard pressed African countries getting urgent bail out from the fund.

Ghana was at high risk of debt distress, the IMF said in a statement. It said the large disbursement of emergency aid would help the West African countries address urgent fiscal and balance of payments needs, and catalyze support from other development partners.

It said it stood ready to provide further policy advice and further support to both countries as needed.

The Fund said on Monday it would provide immediate debt relief to 25 member countries under its Catastrophe Containment and Relief Trust (CCRT) to allow them to focus more financial resources on fighting the coronavirus pandemic.

The first countries that will receive debt service relief from the CCRT are Afghanistan, Benin, Burkina Faso, Central African Republic, Chad, Comoros, the Democratic Republic of Congo, 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, the IMF said.

IMF Managing Director Kristalina Georgieva said the fund’s executive board approved on Monday the first batch of countries to receive grants to cover their debt service obligations to the fund for an initial six months.

“This provides grants to our poorest and most vulnerable members to cover their IMF debt obligations for an initial phase over the next six months and will help them channel more of their scarce financial resources towards vital emergency medical and other relief efforts,” Georgieva said in a statement.