UK Extends 150 m Pounds to Withstand Developing Countries Economic Disruption of COVID-19

The United Kingdom has announced 150 million pounds aid funding in the Budget to help mitigate the impact of coronavirus on the world’s most vulnerable countries.

Chancellor Rishi Sunak said with the support in budget vulnerable countries will be better protected from the economic disruption caused by the COVID-19 outbreak.

The support will go to the International Monetary Fund’s Catastrophe Containment and Relief Trust (CCRT) to help developing countries deal with the short term economic disruption caused by COVID-19, allowing them to focus their spending on tackling the outbreak, it was learned.

Countries will receive support if they experience a severe decline in national income or falling government revenues as a result of COVID-19.

The support, by helping countries that experience severe decline in national income or falling government revenues as a result of coronavirus, will help lessen economic disruption, particularly where vulnerable countries might otherwise default on debt repayments and trigger further economic impacts.

COVID-19 has already had a major impact on oil prices and global stock markets in recent weeks, the release stated, adding that “the IMF fund is designed to lessen the disease’s future global economic impact.”

International Development Secretary Anne-Marie Trevelyan said “We are determined to lessen the economic effect of the coronavirus outbreak on developing countries, which in turn will reduce its global impact.”

The support will make real difference to the most vulnerable countries to COVID-19, according to a press release issued by Department for International Development.

Furthermore, Trevelyan noted “It will allow them to focus on battling this outbreak, which should be every country’s first priority.”

Delivering the budget, Chancellor of the Exchequer Rishi Sunak said “to support the global response, I’m also making new funding of 150 million pounds available for the IMF’s relief efforts.”

According to the release, UK has 91 million pounds has been invested in the research of vaccines and diagnostic tests, and in supporting the World Health Organization and developing countries to prevent the virus spreading around the world since the outbreak began.

The 150 million pounds aid announcement brings UK’s total commitment to the international COVID-19 response to up to 241 million pounds.

Source: Ethiopian News Agency