SI to benefit from six months free debt repayments   - Solomon Star News

SI to benefit from six months free debt repayments  

17 April 2020
Kristalina Georgieva, managing director of the International Monetary Fund (IMF). [Photo: AP]

SOLOMON Islands is amongst 25 International Monitory Fund (IMF) to get six months free charge of debt repayments to the International Monetary Fund.

In a recent issued statement, IMF has approved a funding of $500 million to help the 25 world’s most impoverished countries so they can help tackle the COVID-19 pandemic.  

Those countries include 19 African countries, Afghanistan, Haiti, Nepal, Solomon Islands, Tajikistan, and Yemen.

Managing Director at Washington DC, Ms. Kristalina Georgieva said the IMF Executive Board immediately approved the debt service relief under the IMF’s revamped Catastrophe Containment and Relief Trust (CCRT) as part of the Fund’s response to help address the impact of the COVID-19 pandemic.

“The CCRT can currently provide about US$500 million in grant-based debt service relief including the recent US$185 million pledge by the UK and US$100 million provided by Japan as immediately available resources.

“Others including China and the Netherlands are also stepping forward with important contributions. 

“I urge other donors to help us replenish the Trust’s resources and boost further our ability to provide additional debt service relief for a full two years to our poorest member countries,” she said

Georgieva further added about $215 million of the total would be used for grants to the first 25 countries over the next six months, with extensions possible up to two years.

“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,” she said in a statement.

Meanwhile, Central bank of Solomon Islands Governor Luke Forau has stated that Solomon Islands Economy projected at negative -3 to - 5% growth.