São Tomé and Príncipe obtains a disbursement of $ 12 million from the IMF to deal with Covid-19

The Board of Directors of the International Monetary Fund (IMF) approved, on April 21, 2020, an emergency disbursement of 9.028 million Special Drawing Rights, the equivalent of approximately $ 12.29 million. (or 61% of the quota) in favor of São Tomé and Príncipe.

These funds will help meet the urgent external financing and budgetary needs of Sao Tome and Principe, caused by the Covid-19 pandemic.

The Covid-19 pandemic has significant repercussions on the economy of the small archipelago, mainly due to the impact on the tourism sector, the decline in investments, as well as the disruptions in supply chains. international.

For IMF Deputy Managing Director Tao Zhang, “Emergency aid under the Rapid Credit Facility will help prevent a much more severe and prolonged economic contraction, and provide space for critical health and social spending. . It should also help catalyze donor aid, which is essential to close the remaining funding gap ”.

According to data from the International Monetary Fund (IMF), Sao Tome and Principe's economy is expected to contract 6.0% in 2020, after reaching growth rates of 4% in 2019, and 7% in 2018 .