ENA May5/2020The Government of Ethiopia’s proposal for development partners to defend the spread of COVID-19 pandemic has been gaining positive responses from global allies, according to Ministry of Finance.
State Minister of Finance, Eyob Tekalign told ENA that the spread of coronavirus has become a global threat and negatively affecting developing countries with vulnerable economies.
He added countries which are under-developing have been forced to shift their developmental finance to contain the spread of COVID-19 pandemic in a move to curb humanitarian and social catastrophes posed by the virus.
To help Ethiopia halt the impacts of the pandemic, the country needs more financial support in COVID-19 response and counter for humanitarian crisis, Eyob noted.
He stated that Ethiopia has requested 1.64 billion US dollars for COVID-19 Emergency Response and counter measures to lessen the devastating effects of COVID-19.
“For COVID-19 Emergency Response and other related preparedness like food and water supply, 1. 64 billion USD assistance has been requested. Ethiopia has also requested 4.2 billion USD specially sector excluding the ongoing economic reform the country has embarked,” he said.
The International Monetary Fund (IMF) Executive Board has alone approved 411 million USD in emergency assistance to Ethiopia to address the COVID-19 pandemic, the state minister mentioned.
There has been a better response from multilateral institution particularly, from IMF and World Bank, he said.
Group- 20 countries offered temporary relief to some of the world’s lowest-income countries by suspending debt repayments until the end of the year, Prime Minister Abiy Ahmed said in his article published on New York Times.
He added that it is a step in the right direction and provides an opportunity to redirect financial resources toward dealing with the coronavirus pandemic.
The moratorium must be extended until the coronavirus health emergency is over or canceled altogether. The creditors need to do this unconditionally, Abiy noted.