WASHINGTON (Pakistan Point News / Sputnik - 09th May, 2020) The Indian Ocean nation of Seychelles will receive an emergency loan of $3.1 million to meet financing needs due to the novel coronavirus (COVID-19) crisis, the International Monetary Fund (IMF) said in a press release.
"The Executive board of the International Monetary Fund (IMF) approved today Seychelles' request for emergency financial assistance under the Rapid Financing Instrument (RFI) equivalent to SDR 22.9 million (about US$31.2 million, or 100 percent of quota) to meet the country's urgent balance of payment needs stemming from the COVID-19 pandemic," the release said on Friday.
The near-term economic fallout of the COVID19 pandemic is expected to be severe in the island nation. travel restrictions and the subsequent loss of tourism receipts are sharply reducing economic activity and weakening the fiscal and external positions, creating large additional financing needs, the release said.
"Seychelles' hard-won economic gains since the 2008 crisis, supported by successive Fund arrangements, are being eroded by the severe impact of the COVID-19 pandemic. A temporary fiscal expansion as well as expeditious external support are needed to address the large output contraction," IMF Deputy Managing Director Tao Zhang said in the release.
The release credited the nation with taking immediate measures of containment, including border closures, strengthening health policy responses and supporting households and firms.
The IMF has received emergency funding requests from more than 100 countries due to the COVID-19 pandemic.
