With a debt profile put at $87.239 billion in March 2021, intention to borrow an additional ₦5.01 trillion to meet the expectations of 2022 budget; Nigeria’s increasing debt profile wasn’t enough to make the International Monetary Fund, IMF considers her in its recent fourth round of debt relief.
The recent relief by the international body contains a list of 24 low-income countries as strategies to ease the effect of the Covid-19 pandemic outbreak. Recall that in the west African sub-region, Nigeria is one of the worse hit by the pandemic.
This batch of debt reliefs according to the arm of the United Nations, UN has since distributed a whopping $124 million to bail out low-income countries. This round will cover payments due through January 10, 2022, with a possible extension till April.
Countries that made it to the list
Below are the countries that made it to the list:
- Burkina Faso
- Central African Republic
- The Gambia
- Sao Tome and Principe
- Sierra Leone
- Solomon Islands, and
- Tajikistan are listed as countries eligible to the relief.
For the IMF, the rationale behind the inclusion of countries like Lesotho and Kyrgyzstan is because they meet up with The Catastrophe Containment and Relief Trust (CCRT) eligibility and qualification demands concerning the Covid-19 pandemic.
About the Relief
The relief is financed under IMF’s Catastrophe Containment and Relief Trust (CCRT), which enables the IMF to provide grants to the poorest and most vulnerable countries hit by a natural disaster or public health crisis.