IMF Unveils USD10 Billion Zero-Interest Loan to Fight Coronavirus in Poorest Countries

International Monetary Fund (IMF) to make USD10 billion interest-free loan available for low-income countries to swiftly address the impacts of coronavirus, which has infected 463,400 people so far.  This is a part of USD50 billion financial facilities introduced by the Fund for low income and emerging market countries that could potentially seek support.

The financing will be made available under Rapid Credit Facility (RFI) set up in 2011— that provide emergency financial assistance to low income countries with a zero interest rate, a grace period of 5½ years and a final maturity of 10 years.

“I am particularly concerned about our low-income and more vulnerable members – these countries may see financing needs rise rapidly as the economic and human cost of the virus escalates,” said Kristalina Georgieva, Managing Director of IMF.

While any member country of IMF, including Ethiopia, is eligible to apply, the county’s debt sustainability, balance of payments needs and availability of appropriate policies to address the crisis will be taken into account while providing the financial assistance.