IMF Set To Grant Additional $150m In Aid To Ebola Stricken Countries

January 9, 2015 Felicia Omari Ochelle Business, Pharma & Healthcare

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VENTURES AFRICA – The International Monetary Fund is making the necessary arrangements to grant an added $150 million in the fight against the deadly Ebola virus. According to a report by Reuters, this will cut across the three worst hit countries – Liberia, Sierra Leone and Guinea.
“In Guinea and Sierra Leone, existing Fund financial programs are being augmented to provide more resources to these countries. In Liberia, a one-off disbursement under the Fund’s Rapid Credit Facility is being considered,” Charles Amo-Yartey, ‎IMF Resident Representative in Liberia told Reuters in an email.
The three countries had requested supplementary IMF support to help cover the grave financing needs they suffer. This persuaded IMF to provide $127 million in grants to help deal with the crisis in September 2014. Under the proposed grant, Guinea would get a $40 million loan, Liberia $48 million and $39 million for Sierra Leone.
According to the organisation, these funds were to help cover an estimated $300 million financing gap for these West African countries over the next six to nine
months when the impact of the outbreak will be most dire.
The African Development Bank (AFDB) in the same vein disclosed that it was willing to provide a grant of $150 million to Guinea, Liberia and Sierra Leone to help them balance their public finances on the condition that they must first show that they are doing everything possible to improve their health systems.
At this rate, these nations may be forced to request for alternative support considering that the IMF could move to withhold any further commitments when considering the annual debt incurred by the affected countries. New World Bank data indicates the countries spent over $80 million on debt payments in 2013, the year the outbreak began, while they spent a total of $270 million on public health in 2012 according to the World Bank.