Al-Ittihad – The International Monetary Fund: poor countries need to restructure debt, not freeze payment


Kristalina Georgieva, Executive Director of the International Monetary Fund, announced that some of the poorest countries in the world and emerging market countries may need to restructure their debts in the future to face the effects of the Corona pandemic.
Georgieva indicated that simply freezing debt payments may not be enough. She added that some emerging economies that have adopted prudent and sustainable debt policies are weathering the Corona virus crisis better than others, but a small number of countries with high debt burdens are likely to need assistance in the future.
Georgieva said the International Monetary Fund (IMF) has disbursed about $ 260 billion of its $ 1 trillion lending capacity at this point. To date, the fund has provided emergency funding to 63 of 189 countries that have requested assistance since early March.
The recent outbreak of the Corona virus closed the economy and halted the wheel of factories and productive enterprises.


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