Nigeria, 99 others approached IMF for help to fight COVID-9

International Monetary Fund IMF has said that over 100 countries Nigeria inclusive have reached out to the IMF for help to fight the pandemic. Some of the countries are Afghanistan, Nigeria and Haiti among others. It said that 50+ requests were swiftly approved for a total of about $18 billion. IMF Managing Director Kristalina Georgieva commenting on the request for help said “the only thing we ask countries is please spend more money for your doctors and nurses and please, please use the money to protect the most vulnerable.” 

IMF said that when the Great Lockdown finally ends, a strong economic recovery that benefits everyone will depend on improved social safety nets and broad-based fiscal support. This includes public investment in health care, infrastructure, and climate change. Countries with high debt levels will have to carefully balance short-term fiscal support for the recovery stage with long-term debt sustainability. The pandemic has also highlighted the role of the public sector in saving lives and livelihoods. State-owned enterprises are part of that effort. They can be public utilities that provide essential services. Or public banks that provide loans to small businesses. 

According to the IMF some are also struggling and adding to the burden on government finances. These range from national oil companies that are dealing with a large fall in oil prices, to national airlines without enough passengers traveling. It said that the Executive Board approved its 50th COVID-19 emergency financing package of $214 million to help Nepal address urgent balance of payments needs created by the pandemic, which is having a severe impact on remittances, tourism, and domestic activity, and will substantially weaken Nepal’s GDP growth. The IMF also recently approved $411 million in emergency assistance for Ethiopia.