COVID-19: IMF comes to Cameroon's Aid, dishes out billions

The International Monetary Fund (IMF) has approved the disbursement of about US$ 226 million, equivalent to 127 Billion CFA Francs for the fight against COVID-19 in the Central African nation.

The disbursement under the Rapid Credit Facility (RCF), is to help Cameroon meet up with the growing balance of payment needs created by the global COVID-19 pandemic.

The approval this Monday 4th May 2020 is coming as a relief measure to salvage an economy hardly hit by the crisis. Cameroon's government relaxed measures to fight against COVID-19 mainly to the unbearable tool it was bring to it's economy

According to a statement issued by Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair of the Executive Board’s discussion of IMF,  Cameroon is facing a lot of challenges from the virus.

“The authorities are taking decisive actions to limit the spread of the virus and its economic and social impact. They have implemented strong crisis containment and mitigation measures and are scaling up spending to bolster their health response. Additional measures currently under consideration will provide support to vulnerable households and firms.” He noted

“Given the sudden and pressing nature of the shocks, accommodative fiscal and monetary policies are warranted to mitigate the human and economic impact of the outbreak. However, the authorities remain committed to their reform agenda under the ECF arrangement. They plan to undertake adjustments to return to the fiscal consolidation path once the crisis abates to safeguard debt sustainability and ensure a strong recovery.

Mr Mitsuhiro Acting Director, went further to indicate that the aid will support the government fight the virus and encourages other partners to support.


“IMF emergency financing under the RCF will support the government’s efforts to mitigate the impact of the twin shocks. Additional assistance from development partners will be critical to fill the remaining financing need. Strict budgetary controls and transparency will be needed to ensure that the assistance under the RCF meets its intended objectives.”


The government of Cameroon has been taking measures to curb the spread of this virus, this aid comes as an additional support to continue providing kits to the vulnerable, and affected persons and health care services.

This gesture comes in accordance with French President Emmanuel Macron’s call on International donors and the G20 to massively cancel African countries debts as a means to support in the fight against COVID-19.

Cameroon now joins some 25 other  African countries Benin, Burkina Faso,Central African Republic, Chad, Comoros, Congo, Democratic Republic of Congo, the Gambia, Guinea, Guinea-Bissau, Liberia, Madagascar, Malawi, Mali, Mozambique, Niger, Rwanda, São Tomé and Principe, Sierra Leone, and Togo, who had previously received aids from the IMF.

The support should be efficiently used to safe the lives of thousands already infected.

The number of infected persons in the country has not stop from increasing.

By

Anye Nde Nsoh.