IMF approves USD7.6 million debt relief to Burundi amid COVID-19 pandemic

The International Monetary Fund has said that it had approved USD7.6 million debt relief to Burundi to help address the economic impact of the COVID-19 pandemic, according to a news report by Vanguard.

It said the relief for three months would be potentially raised to $24.97 million over the next 21 months if resources are available.

The IMF Executive Board today approved debt service relief of US$7.6million under the Catastrophe Containment and Relief Trust to help #Burundi deal with the socio-economic effects of #COVID19. https://t.co/21OEWCJaYQ #IMFAfrica pic.twitter.com/d9qbbkq5vm

— IMF (@IMFNews) July 20, 2020

"IMF debt relief will help free up resources for public sector health needs, including other emergency spending and help mitigate the balance of payments shock posed by the COVID-19 pandemic," the IMF said in a statement.

The IMF said it has revised downwards economic growth projections for 2020 by 5.3 percentage points to -3.2 percent this year.

"The pandemic has exacerbated pre-existing economic challenges and creates significant external financing needs in 2020 and 2021, mainly as a result of lower exports, elevated imports needs, and reduced remittances inflows," it said.

Burundi has so far had 328 cases of COVID-19 and one death.