WASHINGTON (Pakistan Point News / Sputnik - 09th May, 2020) Djibouti will receive a $43.4 million emergency disbursement to support the nation's response to the coronavirus pandemic, the International Monetary Fund (IMF) said in a press release on Friday.
"The IMF Executive board approved a US$43.4 million loan to Djibouti to support the authorities' response to the COVID-19 crisis, as well as debt relief under the CCRT, which will generate additional resources of US$ 2.3 million over the next five months, and potentially up to US$ 8.2 million over the next 23 months," the release said.
CCRT, or the Catastrophe Containment Relief Trust provides grants for debt relief to poor countries hit by catastrophic national disasters or public health emergencies, according to an IMF website.
Djibouti's economy is projected to contract by 1 percent in 2020 and lower exports of services and foreign direct investment have opened up an urgent balance of payments financing need of the order $164 million, the release said.
The pandemic has also created urgent spending needs, including in the health sector, and is set to affect negatively government revenue, the release added.
