IMF approves 411 million dollars funds to Ethiopia amid coronavirus

The International Monetary Fund (IMF) has approved 411 million dollars in emergency funding to help Ethiopia cope with the fallout from the coronavirus outbreak.

The IMF Executive Board today approved US$411 million to help #Ethiopia address the economic impact of #COVID19. https://t.co/bus8inzPjT #IMFAfrica pic.twitter.com/rpb0jqIqeV

— IMF (@IMFNews) April 30, 2020

"Ethiopia is facing a pronounced economic slowdown and an urgent balance of payments need owing to the COVID-19 pandemic." according to a report by IMF.

The IMF said in a statement that it also approved Ethiopia's request for a suspension of debt service payments to the Fund, of about $12 million through Oct. 13.

The suspension could be extended up to April 13, 2022, subject to the availability of resources in the IMF's Catastrophe Containment and Relief Trust for poor countries.

The IMF continues to monitor Ethiopia's situation closely and stands ready to provide policy advice and financial support as needed.

The authorities have taken swift and decisive action to contain the impact of coronavirus by strengthening the health system, adopting a state of emergency to limit the spread of the virus, and implementing measures to support the economy.

"The COVID-19 pandemic has created severe health risks and weighed heavily on the Ethiopian economy. If the pandemic is not contained, it will put severe pressure on the health system with devastating social consequences," IMF said in the report.