In a statement issued Monday April 13, IMF Managing Director, Kristalina Georgieva, says the debt relief is providing grants to cover the countries’ IMF debt obligations for an initial six months.

“This provides grants to our poorest and most vulnerable members to cover their IMF debt obligations for an initial phase over the next six months and will help them channel more of their scarce financial resources towards vital emergency medical and other relief efforts,” she says.

Georgieva says the debt service relief was approved by the IMF executive board under a revamped Catastrophe Containment and Relief Trust (CCRT) as part of the Fund’s response to help address the impact of the COVID-19 pandemic.

The CCRT would provide about US$500 million in grant-based debt service relief, including the recent US$185 million pledge by the U.K. and US$100 million provided by Japan as immediately available resources.

Meanwhile, other countries including China and the Netherlands, are also stepping forward with contributions and Georgieva urges donors to help us replenish the Trust’s resources and boost the ability to provide “additional debt service relief for a full two years to poorest member” states.

Aside Malawi, other beneficiary member countries include Afghanistan, Benin, Burkina Faso, Central African Republic, Chad, Comoros, Congo, D.R., The Gambia, Guinea, Guinea-Bissau, Haiti, Liberia, Madagascar, Mali, Mozambique, Nepal, Niger, Rwanda, São Tomé and Príncipe, Sierra Leone, Solomon Islands, Tajikistan, Togo, and Yemen.