Jakarta: The European Union has announced a contribution of 183 million euros (equivalent to US$217 million) to the International Monetary Fund’s Catastrophe Containment and Relief Trust (CCRT), which provides debt service relief to countries hit by catastrophic events including public health crises.
“I am very thankful to the EU and its member countries for the generous contribution of 183 million euros to the CCRT—a critical step to help the world’s most vulnerable countries provide health care and economic support for their people during the ongoing pandemic,” IMF Managing Director Kristalina Georgieva said in a press release on Monday.
"This is an unprecedented crisis that has hit low-income countries especially hard. Contributions like this will enable countries to free up resources to cope with covid-19 and to increase health and social spending," she said.
Jutta Urpilainen, European Commissioner for International Partnerships, said the Commission is determined to continue supporting its partner countries in maintaining their path toward the SDGs despite dire financial situations.
"Debt levels were already high before the crisis and in many countries they are now simply becoming unsustainable. This is why we have decided to contribute €183 million for debt relief through this IMF mechanism," the official said.
The CCRT allows the IMF to support international debt relief efforts when poor and vulnerable countries are hit by natural disasters or public health crises—including the covid-19 pandemic—with grants for debt service relief.
The IMF has already disbursed about US$500 million (or EUR 422 million) in immediate debt relief to all 29 CCRT-eligible members since the pandemic began this year.
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