EU increases IMF disaster relief and relief trust by 183 million euros

The European Union today announced a contribution of 183 million euros (equivalent to SDR 152 million or US $ 217 million) to the Catastrophe Containment and Relief Trust (CCRT) of the International Monetary Fund, which provides debt relief to countries affected by catastrophic events. , including public health, have been hit by crises.

“I am very grateful to the EU and its member states for the generous contribution of 183 million euros to the CCRT – a critical step in helping the world’s most vulnerable countries to provide health care and economic support to their people during the ongoing pandemic,” “The IMF’s managing director, Kristalina Georgieva, said.

“This is an unprecedented crisis that has hit low-income countries particularly hard. Contributions like these will enable countries to free up resources to address COVID-19 and to increase health and social spending,” she said.

“The EU and the IMF have a strong partnership regarding development finance. I call on other member states to join the EU to contribute to the CCRT. Contributions from our member states are of great importance to help the Fund to support the most vulnerable countries, “said Georgieva. said.

European Commissioner for International Partnerships Jutta Urpilainen said: “The Commission is determined to support its partner countries in maintaining their path to the SDGs despite serious financial situations. Debt levels were already high before the crisis and in many countries [1] they are now simply becoming unsustainable. That is why we have decided to contribute € 183 million for debt relief through this IMF mechanism. ‘

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 debt relief grants. Me. Georgieva has called on the international community to supplement the CCRT, which currently has limited resources for disaster relief. Since the start of the pandemic, the IMF has disbursed approximately $ 500 million (or 422 million euros) in immediate debt relief to all 29 members eligible for CCRT.

[1] Other contributing countries to CCRT include the United Kingdom, Japan, Germany, the Netherlands, Switzerland, Norway, China, Mexico, Sweden, Bulgaria, Luxembourg and Malta.

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