The International Monetary Fund yesterday approved a debt relief package worth $7.63 million to Burundi, bringing the lenders’ total debt relief to $251.24 million given to 28 developing countries. The grant will help Burundi service its debt from July 21 to October 13, 2020, freeing up resources to address the health and economic shocks of the pandemic.
The IMF will also grant the country an additional debt cover for the period between October 14 2020, and April 13 2022, subject to availability of funds. This will bring its total debt assistance to Burundi to $24.97 million for 21 months.
“The IMF Executive Board approved debt relief under the Catastrophe Containment and Relief Trust to provide US$ 7.63 million (SDR 5.48 million) over the next three months, and potentially up to US$ 24.97 million (SDR 17.96 million) over the next 21 months. IMF debt relief will help free up resources for public sector health needs, including other emergency spending and help mitigate the balance of payments shock posed by the COVID-19 pandemic,” reads an IMF statement.
Burundi’s economy has suffered severely from the pandemic, which has increased its import needs and lowered exports and remittances. IMF revised down projections for the country’s 2020 economic growth by 5.3% to -3.2%.
Burundi Needs Urgent Healthcare Assistance
While the country is taking steps to fight COVID-19 such as the strengthening its healthcare system, creating social safety nets and improving its road networks to facilitate the movement of sick people, there is still a lot to do.
AfDB says that the country has a ration of fewer than ten physicians per 100,000 people, far from the recommended 100 physicians for every 100,000 people. Burundi ranks 177 among 195 countries in the 2019 Global Health Security Index, with low prevention, detection and rapid response capacity.
The IMF, therefore, urges for “close cooperation between multilateral organization and donors to ensure adequate budget allocations towards health.”
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