Salone benefits from fourth tranche of IMF Debt Service Relief
Sierra Leone, Freetown: Sierra Leone will benefit from the fourth tranche of debt service relief from the Catastrophe Containment and Relief Trust (CCRT) for 24 member countries with eligible debt falling due in the period through 10th January, 2022.
Last Friday, in Washington, DC the Executive Board of the International Monetary Fund (IMF) gave approval for the fourth tranche, totaling approximately SDR 87.9 million (US$124 million), for all 24 countries which follows three prior tranches approved on 13th April, 2020, 2nd October, 2020, and 1st April, 2021.
According to the IMF’s debt service analysis, Sierra Leone’s payment to service its debt with the Fund stands at SDR 6.00 million (USD 8,469,349.67) and this is due to be paid between 16th October, 2021 and 10th January, 2022, which is the maximum period covered by the fourth tranche of debt service relief under the CCRT.
The balance of SDR 11,554,500 is due to be paid between 11th January, 2022 and 13th April, 2022, and this will be covered subject to resource availability.
According to the Fund, this debt service relief helps free up scarce financial resources for vital health, social, and economic support to mitigate the impact of the COVID-19 pandemic. Subject to the availability of sufficient resources in the CCRT, debt service relief for all beneficiary countries could be provided for the remaining period from January 11 to April 13, 2022, amounting to approximately SDR 82.1 million and a cumulative debt service relief of about SDR 690 million (US$973 million) for the entire two-year period.
In March 2020, Managing Director Kristalina Georgieva launched an urgent fundraising effort to raise SDR 1 billion (US$1.4 billion) in grants for the CCRT. This would enable the CCRT to provide financial assistance for relief on debt service for up to a maximum of two years, while leaving the CCRT adequately funded for future needs.
So far, donors have pledged contributions totaling about SDR 609 million (US$860 million), including from the European Union, the UK, Japan, Germany, France, the Netherlands, Spain, Switzerland, Norway, Singapore, Greece, China, Mexico, the Philippines, Sweden, Bulgaria, Luxembourg, and Malta. On September 20, 2021, Japan provided a second grant contribution of US$50 million (SDR 35.2 million) in addition to the US$100 million (SDR 73.4 million) it provided in April 2020. ZIJ/12/10/2021
By [email protected]