World Bank Approves $7million Coronavirus Grant for Zimbabwe

The World Bank has agreed to grant $7 million to Zimbabwe to help it fight the new coronavirus outbreak. Zimbabwe is more than $1.2 billion in arrears to the World Bank, African Development Bank and European Investment Bank, making it normally ineligible for funding or debt forgiveness from global lenders.

 

Zimbabwe’s finance minister, Mthuli Ncube.
Souce : Voice of America,

The World Bank spokesman said that while Zimbabwe and other countries indebted to the lender could not access regular financing, they could get money from its trust funds to fight the coronavirus that has slowed down the global economy.

The lender explained that,“The bank’s senior management has underlined the need for additional trust fund financing to ensure that Zimbabwe and the small group of other countries in arrears can receive support as part of our global effort to help countries respond to the COVID-19 crisis.” 

Zimbabwe will get $5 million from the World Bank’s global financing facility trust and another $2 million will be diverted from funds meant to help the country recover from a devastating cyclone in 2019.

“We recognise this is a global crisis that affects every country and we cannot leave anyone behind in our response,” the statement further said.

Zimbabwe’s finance minister, Mthuli Ncube had written to the International Monetary Fund and other lenders last month warning that the country is being driven towards a health and economic catastrophe by the coronavirus pandemic because its debt arrears mean it cannot access foreign financing.

The impoverished southern African nation has only recorded 34 cases and four deaths from the coronavirus but analysts say its fragile health system will not be able to handle any surge in infections.