The International Monetary Fund said on Thursday that it would extend its flexible access to emergency finance for another 18 months to assist countries hit hard by the Covid-19 epidemic.
The executive board of the International Monetary Fund agreed on Monday to “temporary enhancements to the cumulative access restrictions under its emergency lending instruments” until June 2023, according to a statement from the Washington-based crisis lender.
As the globe approached the first wave of coronavirus illnesses and fatalities in April 2020, the IMF made it easier to get such help, including increasing the amount of money that nations could get.
The programs were previously extended twice, first in September 2020 and again in March of this year.
The board also decided that from January 1, 2022, “all other access limitations” that had been temporarily enhanced would be lowered to pre-pandemic levels.
“This decision reflects the projected and continuing gradual transition from emergency funding prompted by the urgent, pandemic-related balance of payment requirements to higher-credit-tranche quality arrangements,” the IMF stated.
It further said that the resolution guaranteed member nations’ “continuing access” to the IMF’s emergency funding in the event of urgent balance of payment concerns.
The Rapid Credit Facility, an interest-free program for low-income countries, and the Rapid Financing Instrument, which is open to all Fund members, are among the instruments.
The funding may be paid rapidly to assist member states in implementing emergency measures.
The IMF said on Monday that it has granted the fifth and last tranche of debt reduction under a program aimed at assisting the world’s poorest countries in weathering Covid.