The International Monetary Fund (IMF) has launched a fundraising exercise that would enable its relief trust to provide about $1 billion (Sh105 billion) for the current coronavirus pandemic.
The Catastrophe Containment and Relief Trust (CCRT) enables the IMF to deliver grants for debt relief benefiting eligible low-income countries in the wake of catastrophic natural disasters and major, fast-spreading public health emergencies.
The global lender has expanded the targeted scope to include needy and worst hit countries outside the low-income bracket, a move that may see countries like Kenya which moved to lower middle income bracket in 2015 benefit from the fund.
The World Bank has confirmed Kenya’s lower-middle income country status following the change in the way the size of its economy is calculated which showed it was 25 per cent larger than previously estimated.
According to the World Bank, countries in this category have a Gross Net Income (GNI) per capita of more than $1,046 (Sh99,024) but less than $4,125 (Sh390,513).
Those in the upper middle-income bracket have yearly income levels of $4,126 to $12,735.
"In that context, the IMF Executive Board has approved changes to the CCRT that expand the qualification criteria to better cover the circumstances created by a global pandemic and to focus on delivering support for the most immediate needs,’’ the lender said in a statement.
IMF Managing Director Kristalina Georgieva said there was only $200 million and appealed on economically stronger member countries to support.
"The United Kingdom has already donated £150 million ($183 million). Other donors, including Japan and China, are also coming forward with important contributions,’’ Georgieva said.
She added that the COVID-19 outbreak and the associated global economic turmoil creates a critical need to support the Fund’s membership, including exceptional balance of payments support for the poorest members especially impacted by the pandemic. ‘’Well-targeted support will allow these countries to prioritise medical spending and health-related as well as other immediate needs in the challenging economic environment,’’ Georgieva said.
