UK boosts IMF’s Catastrophe Fund with £150m

Joseph Inokotong, Abuja

The United Kingdom announced yesterday, a package of measures to respond to the economic challenges of Coronavirus pandemic, including a contribution of £150 million to the International Monetary Fund’s Catastrophe and Containment Relief Trust (CCRT), which provides debt relief to countries hit by catastrophic events including public health disasters. 

A statement from the IMF said the contribution will be in the form of a £75 million grant directly to the trust, plus additional £75 million earmarked in the budget and contingent to demand.

IMF Managing Director, Kristalina Georgieva, said  “I welcome the economic and fiscal measures announced in the UK government’s budget statement to address the economic impact of the Coronavirus epidemic.

“The coordinated monetary and fiscal policy measures will help to alleviate the health challenges and support households and businesses to bridge through the economic challenges facing the country.”

She also welcomed the announcement that HM Treasury, would conduct a review of the UK’s fiscal framework.

Georgieva praised in particular the UK’s support for the CCRT, saying “This contribution represents a most welcome response to the International Monetary and Financial Committee’s (IMFC) call on the membership to provide the necessary support to mitigate the impact of the Coronavirus crisis, especially for the poorest and most vulnerable countries.

“I urge other member countries to follow the UK’s leadership in contributing to the CCRT. By working together, we can overcome the global challenge facing us and restore growth and prosperity for all.”

The CCRT allows the IMF to support international debt relief efforts when poor countries are hit by natural disasters and to assist poor countries battling public health crises-such as epidemics like the coronavirus-with grants for debt service relief.

Last week, Ms. Georgieva called upon the international community to help replenish the CCRT , which had only $200 million available for the world’s poorest countries.