Rwanda is seeking for the suspension of its debt repayments for at least two years in order to deal with the economic impacts of the global COVID-19 pandemic.
The country’s media outlets have quoted President Paul Kagame that the economy will probably only grow 3.5% this year, from an earlier projection of at least 8%, and is, therefore, negotiating with lenders to delay repayments and use the money to stimulate economic activity instead.
However, Kagame didn’t specify if he also wanted a moratorium for Rwanda’s commercial debt.
Rwanda is one of the African countries that has stepped up the fight against the virus, seeking to cushion its citizens and economy against the pandemic that continues to take a toll on businesses.
It has organized for the door to door distribution of food, provision of free water and electricity, alongside free medical supplies.
Officials from the G20 countries (Group of 20 major economies) have already announced plans to suspend both principal repayments and interest payments on loans for the world’s poorest countries. The waiver will last up to the end of the year.
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