Africa needs $100bn economic stimulus, say finance ministers

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Africa needs an immediate emergency economic stimulus to the tune of $100bn, owing to the COVID-19 outbreak, the African finance ministers have said.

This is contained in a statement by Communication and Media Relations Department of the group, which was made available to News Agency of Nigeria.

The ministers said as such, the waivers of all interest payments, estimated at $44bn for 2020, and the possible extension of the waivers to the medium term, would provide immediate fiscal space and liquidity to the governments in their efforts to respond to the COVID-19 pandemic. The ministers agreed on the need to consider waivers for principal and interest payments and encourage the use of existing facilities in the World Bank, International Monetary Fund, African Development Bank and other regional institutions for the fragile states.

In other critical sectors such as agriculture, imports and exports, pharmaceuticals and banking, the finance ministers agreed that all interest and principal payments on corporate debt, leases, extended credit facilities, refinancing schemes and guarantee facilities should be used to waive, restructure and provide additional liquidity in 2020.

 

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