We publish a new tool today that tracks countries that have requested IMF financial support, under its different guises, in order to help them deal with the impact of Covid-19 (table below). We do not claim it is exhaustive, but hope our tracker provides a useful guide to investors on the current state of play. We aim to produce regular updates.
Recall, the IMF announced on 4 March that it will make available US$50bn through its existing rapid-disbursing emergency facilities, the Rapid Financing Instrument (RFI) and Rapid Credit Facility (RCF). Neither of these facilities require policy conditionality. Meanwhile, other countries may seek financial support through their existing or new IMF programmes (eg see our Credit Weekly on 2 April on Honduras and Georgia).
The IMF Managing Director Kristalina Georgieva has said over 80 countries have requested emergency financing from the IMF so far. This could stretch its own institutional capacity as well as financial resources. The IMF is also seeking significantly to boost its own firepower through an SDR allocation, among other measures, to deal with the likely volume of requests for help.
The Kyrgyz Republic became the first country for which the IMF formally approved emergency financing under these facilities on 26 March. This was followed this week by Rwanda (approved) and Senegal (awaiting board approval). A string of other countries are likely to follow. Some have been reported by the IMF itself, others by local media or national governments. Our tracker captures some 13 countries that we know of so far. Given the number of requests, and what has been reported and what hasn't, we cannot hope to capture all of them, but aim to build on this list over time.
In addition, the World Bank announced last night that it will provide up to US$160bn over 15 months to help countries respond to immediate health consequences of the pandemic and bolster economic recovery. The first group of projects, amounting to US$1.9bn, will assist 25 countries. A further 40 countries are being fast-tracked.