IMF Provides Emergency Support of 1.5 Trillion Won to Kenya and Uganda for COVID-19 Response

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The International Monetary Fund (IMF) has decided to support two East African countries expected to suffer severe economic damage due to the spread of the novel coronavirus disease (COVID-19).

On the 6th (local time), the IMF announced that it will provide emergency support of $739 million (approximately 904.5 billion KRW) to Kenya and $491.5 million (approximately 601.6 billion KRW) to Uganda.

In a statement, the IMF explained that through the Rapid Credit Facility (RCF), it will increase Kenya's foreign exchange reserves to cover this year's balance of payments deficit.

It added that the funds will also be used to secure resources for public health and support households and businesses facing crises due to COVID-19.

Kenya is the largest economy in East Africa and has suffered significant damage to tourism and flower exports due to this global pandemic.

The IMF explained that although Uganda benefited from strict monitoring measures to block the virus, it faced difficulties due to heavy rains and ongoing locust invasions.

Earlier, on the 4th, the IMF approved emergency support amounting to $226 million (approximately 276.6 billion KRW) for Cameroon in West Africa to respond to COVID-19.

This content was produced with the assistance of AI translation services.