By DailyNewsUG Correspondent,
– Disbursed under the Rapid Credit Facility, Kenya will receive $739 million,
– Uganda is set to get $491.5 million.
The International Monetary Fund has extended $1.2 billion in emergency funding to Kenya and Uganda to respond to the coronavirus pandemic that is wreaking havoc to economies.
Disbursed under the Rapid Credit Facility, Kenya will receive $739 million to help it meet urgent balance of payments needs stemming from the pandemic that has left the country with significant fiscal and external financing needs and disrupted plans for fiscal consolidation.
The Kenyan facility carries a zero per cent interest rate, a grace period of 5.5 years and a final maturity of 10 years.
Uganda is set to get $491.5 million to finance health, social protection and macroeconomic stabilisation measures beside addressing balance of payments and fiscal needs.
“The Covid-19 pandemic has delivered a large economic shock to Kenya. The pandemic has impacted nearly all facets of the economy and led to urgent balance of payments and fiscal financing needs,” said Tao Zhang, IMF deputy managing director.
He added the financing will deliver liquidity support to help Kenya cover its balance of payments gap and provide resources for fiscal interventions to safeguard public health and support households and firms affected by the crisis.