The European Union will contribute €183 million to the IMF’s Catastrophe Containment and Relief Trust for debt relief in 29 low-income countries. The EU funds channelled through the IMF’s Catastrophe Containment and Relief Trust (CCRT) will provide debt service relief to 29 of the world’s poorest and most vulnerable countries.
Josep Borrell, High Representative and Vice President for Foreign and Security Policy, said:” The EU is combining injections of funds for the rapid easing of budget constraints to help the immediate response – through contributions like this one – with a sustained longer-term plan to assist partners in weathering a severe social-economic storm, which is far from over. The EU has been leading global efforts to do more on debt relief and debt restructuring efforts. It is our hope that our contribution will pave the way for others to join those global efforts.”
Paolo Gentiloni, Commissioner for Economy, added: “Today, Europe makes an important contribution to multilateralism and debt relief. The EU as a member of the G20 strongly supports the Debt Service Suspension Initiative and the new Common Framework on Debt Treatment. This contribution to the IMF debt relief trust is a further demonstration of our firm commitment to helping low-income countries deal with their debt burden.”
Jutta Urpilainen, Commissioner for International Partnerships, stressed: “The Commission is determined to continue supporting its partner countries in maintaining their path toward the SDGs despite dire financial situations. Debt levels were already high before the crisis and in many countries they are now simply becoming unsustainable. This is why we have decided to contribute €183 million for debt relief through this IMF mechanism.”
Kristalina Georgieva, IMF Managing Director, participated in the virtual European Foreign Affairs Council of Development ministers to maximise common awareness of the worsening debt situation in many countries, said: “I am very thankful to the EU for the generous contribution of €183 million to the CCRT—a critical step to help the world’s most vulnerable countries provide health care and economic support for their people during the ongoing pandemic. The EU and the IMF have a strong partnership on development financing. I urge others to join the EU and our other contributors in giving to the CCRT. Contributions from our member countries are instrumental in helping the Fund support the most vulnerable countries.”