IMF Executive Board Approves a Disbursement for St. Vincent and the Grenadines to Address the Fallout from the Volcanic Eruption

• The IMF Executive Board approved the request by St. Vincent and the Grenadines for emergency financing assistance of about US$11.6Mn under the Large Natural Disaster Window (LNDW) of the Rapid Credit Facility (RCF). The RCF will help address the urgent balance of payment needs associated with the explosive eruption of the La Soufrière volcano. 
• The ongoing eruption is hitting St. Vincent and the Grenadines hard, compounding the economic and social/humanitarian impact of the pandemic and by IMF staff’s estimates, may result in economic losses amounting to around 30% of GDP as infrastructure, housing, and crops are damaged. 
• This will be the first request under the LNDW of the RCF. A member may qualify for the LNDW when urgent balance of payments needs stem from a natural disaster that results in damages of at least 20% of the member’s GDP.

(Source: IMF)