The IMF is working to reduce debt in order to free up fiscal space for the poorest countries in Africa to fight against Covid-19, as finance ministers say, full waiver of all public and private sector debt is essential.
The call comes as G20 leaders hold an emergency video summit on Thursday to discuss their response to the coronavirus.
Africa needs $ 100 billion in additional emergency resources to fight coronavirus and calls on IMF, World Bank and European Central Bank (ECB) to provide aid to quit to some $ 44 billion in debt service payments for 2020.
African finance ministers called on international donors to make $ 100 billion in resources available through a coordinated response to fight the virus in an open letter to the heads of the three multilateral development banks (MDBs) after a virtual conference facilitated by the United Nations Economic Commission for Africa (UNECA).
A more appropriate collective response led by G20 countries and international financial institutions would call for a temporary moratorium on debt service payments for all developing countries to all creditors – Senior Executive, Development Bank
Calling on the MDBs to lead the financing effort, ministers also called for the immediate waiver of interest payments on all public sector debt, estimated at $ 44 billion for 2020.