The International Monetary Fund on Monday said its executive board had approved $1 billion in emergency funding for Ghana and $442 million for Senegal to enable both countries to respond to the rapidly-spreading coronavirus pandemic.
Ghana was at high risk of debt distress, the IMF said in a statement. It said the large disbursement of emergency aid would help the West African countries address urgent fiscal and balance of payments needs, and catalyze support from other development partners.
It said it stood ready to provide further policy advice and further support to both countries as needed.
In another developent the IMF said said it would provide immediate debt relief to 25 member countries under its Catastrophe Containment and Relief Trust (CCRT) to allow them to focus more financial resources on fighting the coronavirus pandemic.
IMF Managing Director Kristalina Georgieva said the fund’s executive board approved the first batch of countries to receive grants to cover their debt service obligations to the fund for an initial six months.
The first countries that will receive debt service relief from the CCRT are Afghanistan, Benin, Burkina Faso, Central African Republic, Chad, Comoros, the Democratic Republic of Congo, Gambia, Guinea, Guinea-Bissau, Haiti, Liberia, Madagascar, Malawi, Mali, Mozambique, Nepal, Niger, Rwanda, São Tomé and Príncipe, Sierra Leone, Solomon Islands, Tajikistan, Togo and Yemen, the IMF said.