By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE) – The staff of global financial institution, the International Monetary Fund (IMF) on Wednesday said it has recommended to its executive board a proposal of $127 million to support Guinea, Liberia and Sierra Leone fight the dreaded Ebola virus disease (EVD).
The IMF said in a statement made available to InvestAdvocate that the Ebola outbreak in West Africa is exacting an acute human and economic toll that requires rapid action by the international community.
“The Ebola outbreak is a severe human, social and economic crisis that requires a resolute response from the international community,” said IMF managing director Christine Lagarde.
According to her the governments of the three (3) countries have requested additional IMF support to help cover the acute financing needs they are facing as a result of the outbreak. The proposed additional financing is expected to be considered by the IMF’s board in early October.
‘’We are working very closely with them to help address these needs as quickly as possible,” she said.
The IMF said beyond the human toll, the Ebola outbreak is having a significant economic and social impact on the three (3) countries and its staff preliminary estimates show that growth is likely to slow sharply in all three (3) countries as key economic sectors such as agriculture, mining, and services are being disrupted.
‘’Food and labour supply disruptions are hitting the poor and vulnerable groups hardest. Significant financing gaps have emerged as export and tax revenue have fallen, and governments try to meet additional needs to finance their healthcare systems and food and fuel imports.’’ The Fund said.
The IMF said if the approval of the $127 million is received, it will immediately be made available to the governments of the three (3) nations.
Also, the $127 million financing will help cover a sizeable share of the total financing gap of some $300 million estimated over the next six (6) to nine (9) months by staff for the three (3) countries.
‘’Additional and prompt balance of payments and budget support from the countries’ bilateral and multilateral development partners will be important to support macroeconomic stability through this challenging period,’’ the IMF affirmed.
