The International Monetary
Fund has approved a loan of US$110 million to help Swaziland (eSwatini) as it
grapples with the coronavirus crisis.
The Swazi Government had earlier said
the coronavirus (COVOD-19) pandemic had devasted the economy and it would be US$207
million short of the budget funds it needed for the present financial year.
It applied to the IMF’s Rapid
Financing Instrument scheme.
Announcing the assistance
the IMF said, ‘The COVID-19 pandemic has magnified eSwatini’s existing economic
and social challenges, leading to a sharp decline in growth and large financing
needs.’
The IMF added, ‘The immediate
priority is to support public health, vulnerable groups and businesses. Once
the impact of the pandemic subsides, it is critical to implement the
authorities’ fiscal consolidation plan and structural and governance reforms to
ensure debt sustainability and achieve a fast and inclusive recovery.’
The IMF said Swaziland’s
economy already faced ‘deep economic and social challenges’ before the
coronavirus crisis hit the kingdom in March. Swaziland has been on partial
lockdown since then.
The IMF said, ‘Before the
pandemic, growth was subdued, the fiscal deficit and public debt were rising,
and international reserves declining, amid elevated unemployment and widespread
poverty. The pandemic has resulted in a sharp decline in growth and generated
large financing needs, magnifying these challenges.’
The coronavirus crisis is
worsening in Swaziland. On Wednesday the Ministry of Health announced a record number
of positive cases of 147 in a single day. There have been 40 deaths, half of
them in the past 14 days. In total 2,551 people have tested positive.
See also
IMF reports Swaziland public debt rising, foreign
reserves fallen ‘below adequate levels’
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