Rwanda is set to benefit from a $16.9 million debt service relief from the International Monetary Fund (IMF) for an initial period of six months, the Fund has said.

This is the second debt service relief to Rwanda by IMF. It is part of the Fund’s efforts to pause collection of debts from a number of countries to help them deal with the impact of the Covid-19 pandemic. 

By not servicing its debt obligation for several months, Rwanda will have more capital available to invest in affected sectors of the economy as well as improve capacity to respond to the pandemic.

The $16.9 million would have been paid in servicing debt owed to the IMF for six months from October 14, 2020 to April 13, 2021.

Subject to the availability of resources, debt service relief could be provided for a total period of two years, through April 13, 2022, estimated at nearly US$959 million.

The move is aimed at freeing up scarce financial resources for vital emergency medical and other relief efforts.

Samba Mbaye, the IMF Rwanda Resident Representative, told The New Times that the organization is in the process of mobilizing funds to extend the debt relief further. 

“The IMF will continue its fundraising efforts and will provide further debt service relief for a period up to 24 months depending on resource availability,” he said.

Rwanda has also received $220.46 million from the International Monetary Fund as part of the Rapid Credit Facility (RCF) to support recovery amidst the Covid-19 pandemic.