Executive Board of the International Monetary Fund (IMF) approved $411 million in emergency assistance to Ethiopia on Thursday, to help combat the coronavirus pandemic.

Stating in a statement that Ethiopia is facing a pronounced economic slowdown and an urgent balance of payments need owing to the COVID-19 pandemic, IMF related that COVID-19 "has created severe health risks and weighed heavily on the Ethiopian economy. If the pandemic is not contained, it will put severe pressure on the health system with devastating social consequences.”

Ethiopia will also benefit from IMF debt service relief under the Catastrophe Containment and Relief Trust (CCRT), the statement pointed out. The Executive Board also approved a re-phasing of disbursements under the Extended Credit Facility (ECF) and Extended Financing Facility (EFF) arrangements that have been supporting Ethiopia’s economic reform program.

Consequently, IMF's Executive Board has approved Ethiopia’s request for relief under the CCRT on debt service falling due to the IMF until October 13, 2020, with a possibility of extension up to April 13, 2022, of about $12 million.

“The authorities have taken swift and decisive action to contain the impact of COVID-19 by strengthening the health system, adopting a state of emergency to limit the spread of the virus, and implementing measures to support the economy,” IMF's statement read.

Tao Zhang, Deputy Managing Director and Chair of the Board, said “Ethiopia showed good progress under the extended arrangements with the Fund.”

Mr. Zhang went on to say that Ethiopia has moved decisively to contain the spread of the virus and manage the economic fallout from the global downturn and the needed health-related measures.

Source: ENA