On Wednesday the IMF board approved $220 million as emergency aid for Afghanistan to help deal with the economic impact of the Coronavirus pandemic.
A statement issued by the IMF reportedly said that ‘the pandemic is inflicting heavy damage on Afghanistan's economy, which is expected to contract sharply in 2020, imperiling the livelihood of a significant segment of the population.’
The Washington-based crisis lender will release the fund to "help meet the urgent" financing needs as the authorities boost critical health spending and offer social assistance to the households hit hard by the crisis.
The loan is released from the IMF's Rapid Credit Facility, which is meant to ramp up and doubled in size to get quick aid to the world's poorest nations, that are most vulnerable to the economic crisis the shutdowns to contain the outbreak would ensue.
According to the plan, such a needy country can receive up to two loans from the facility in a 12-month period, pay zero interest and take 10 years to repay, with the first payment due after five-and-a-half years.
IMF Managing Director Kristina Georgieva reveals that over 100 requests have been received for aid from its members; developing countries will need about $2.5 trillion to deal with the enduring crisis due to the pandemic.