Stepping Up to Meet Low-Income Countries’ Pandemic Recovery Needs

• Low-income countries have been hard hit by the pandemic. Their large financing needs are only likely to grow as they deal with the crisis and its economic aftermath. The IMF has approved a far-reaching package of support that would expand their access to financial assistance at zero-interest rates, while providing stronger safeguards against taking on debt they cannot handle.
• IMF has provided financial assistance to 50 low-income countries totaling $13 billion in 2020 compared to an average of $2 billion a year pre-pandemic. It also provided $739 million in grant-based debt service relief to 29 of its poorest and most vulnerable members.
• Three-quarters of the new lending came from the Poverty Reduction and Growth Trust (PRGT)–the IMF’s vehicle for zero-interest loans to low-income countries. The lion’s share was in the form of emergency disbursements with limited conditionality.
• Looking ahead, low-income countries will continue to require exceptional levels of external financial support as they recover from the pandemic, and boost investment to build more resilient and inclusive economies.

(Source: IMF and NCBCM Research)