The International Monetary Fund (IMF) has approved the release of financial assistance amounting to SDR 258.4 million to help Myanmar minimise the economic and social impacts of the COVID-19 pandemic. A statement from the IMF released on January 13 said their executive board approved a disbursement of SDR 86.1 million (16.67 percent of quota) under the Rapid Credit Facility (RCF), and a purchase of SDR 172.3 million (33.33pc of quota) under the Rapid Financing Instrument (RFI) for Myanmar. The total adds up to approximately US$372 million.
The SDR is an international reserve asset created by the IMF in 1969 to supplement its member countries’ official reserves. The value of the SDR is based on a basket of five currencies- the US dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound sterling. The IMF assistance will aid Myanmar’s COVID-19 policy measures aimed at minimising the pandemic’s economic and social impact while supporting the vulnerable.
According to the statement, this is the second emergency financial assistance that IMF will be providing for Myanmar following the COVID-19 outbreak. The IMF executive board approved a disbursement of US$ 356..5 million for Myanmar on June 26, last year. This brings the total IMF financial assistance provided to Myanmar to address the ongoing pandemic to approximately US$700 million.
Source: Myanmar Times