CODIV-19: Report suggests it may take 3 years for African economies to fully recover

CODIV-19: Report suggests it may take 3 years for African economies to fully recover

- A report has suggested that African economies may take about three years to fully recover from the economic effects of the coronavirus

- This was contained in a statement released by African ministers and presented at a meeting with the UNECA

- The ministers also jointly called for a special purpose vehicle created to deal with all sovereign debt obligations

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A study into the spread and effect of the coronavirus on African economies has shown that it may take three years for a full recovery.

The continent’s finance ministers drew the conclusion and requested development partners to consider debt relief over a two- to a three-year period for all African nations.

This was contained in a statement presented at a meeting with the United Nations Economic Commission for Africa (UNECA).

READ ALSO: African Export-Import Bank to create a $3bn credit facility for African countries

A Bloomberg report shows that the ministers are also interested in a special purpose vehicle created to deal with all sovereign debt obligations.

A month ago, the ministers concluded that the continent is in dire need of a stimulus package of $100 billion.

The package is designed to be used to face the economic implications of the spread of the virus.

YEN.com.gh understands that the package amount includes $44 billion in debt-servicing waivers.

Meanwhile, the International Monetary Fund (IMF) has approved an extension of time for Ghana and other borrowers to repay debts owed.

The IMF intends to give the countries in question ample time to support their economic activities as the world battles the coronavirus.

Ghana has already applied for funds from the IMF and this was approved after which $500 million was made available.

President Akufo-Addo earlier announced an intent to allot $100 million to fight the outbreak.

READ ALSO: African countries call for $100 billion stimulus and tax holidays

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Source: Yen.com.gh

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