The Delegation of the European Union to Yemen

EU joins IMF’s efforts for debt service relief in Yemen

Brussels, 08/04/2021 - 11:36, UNIQUE ID: 210408_6
Press releases

The European Union (EU) has contributed 20.5 million euro in debt service relief to Yemen under the Catastrophe Containment and Relief Trust (CCRT) of the International Monetary Fund (IMF).

The Covid-19 pandemic, together with repeated outbreaks of communicable diseases and the conflict, has put an enormous strain on Yemen’s fragile health system – already characterised by shortages in medical supplies and personnel, damaged infrastructure and high reliance on foreign aid. Consequently, Yemen is rated as one of the countries least prepared for the pandemic, according to the Global Health Security Index.

“The fiscal space generated by the additional tranche of debt service relief will allow investments in social and economic areas. All women, men, girls and boys in Yemen have the right to vital healthcare services, education and livelihood opportunities,” noted the Ambassador of the European Union to Yemen,” Mr. Hans Grundberg.

 The EU has also provided Yemen with various forms of assistance to respond to the Covid-19 crisis, including through immediate support to the health system, dedicated Covid-19 special measures and additional support aimed at mitigating the economic impact of the pandemic.

The new EU contribution of 183 million euro to the IMF’s Catastrophe Containment and Relief Trust (CCRT) will benefit 28 low-income countries. With this contribution, the EU institutions and the EU Member States become the largest donor to the CCRT, which currently amounts to 781.1 million USD.

Background

The CCRT provides grants to pay debt service owed to the IMF by eligible low-income member countries facing natural disasters or public health crises—such as the COVID-19 pandemic.

The beneficiaries of the third CCRT tranche are Afghanistan, Benin, Burkina Faso, Burundi, Central African Republic, Chad, Comoros, Democratic Republic of the Congo, Djibouti, Ethiopia, The Gambia, Guinea, Guinea-Bissau, Haiti, Liberia, Madagascar, Malawi, Mali, Mozambique, Nepal, Niger, Rwanda, São Tomé and Príncipe, Sierra Leone, Solomon Islands, Tajikistan, Togo and Yemen.

For More Information

 

Links:

Factsheet on CCRT:

https://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/16/49/Catastrophe-Containment-and-Relief-Trust

Q&As on CCRT:

https://www.imf.org/external/np/fin/ccr/index.htm

 

 

 

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