COVID-19 originated from no where to cinch it’s hooks on humankind few months back. The pandemic has been hard on every single individual and organization when all is said in done all over the world, aggravating financial issues.
Because of the serious nature of the pandemic, control measures were taken to safe guard public health. Not long after March 15, numerous countries authorities proactively executed exacting regulation measures to control the COVID-19 flare-up.
These measures led to more people staying home and reducing daily movements to areas with services and recreational facilities, including the informal economy. The development of new cases has since eased back to some degree, and various countries have carefully facilitated a portion of their regulation measures.
Regionwide, the pandemic is still in its exponential stage with in excess of a fourth of a million affirmed cases, and disease cases multiplying each 2-3 weeks.
Since April, worldwide growth for 2020 has been updated somewhere near 1.9 rate points to – 4.9 percent; worldwide travel industry has fallen and its streams have grounded to a stop; remittances are relied upon to fall by around 20 percent; outer financing conditions stay tight regardless of some easing in recent weeks; and commodity prices remain low.
For this reason, more international support is urgently required in many continents especially in the sub-Saharan Africa. International financial institutions, including the IMF, have provided much-needed assistance to sub-Saharan Africa throughout this dangerous season in many ways.
On April 15, the G20 announced the Debt Service Suspension Initiative (DSSI), which allows the world’s poorest countries — most of them in Africa — to suspend up to $14 billion of debt service payments due in 2020. Despite this, countries across Africa still face financing needs amounting to over $110 billion in 2020, with $44 billion still having to be financed.
To date, no one knows when the pandemic will leave our ‘necks’_ therefore the IMF, World Bank and other giant financial institutions are relied upon to support the poor countries in need.
Truth be told, the IMF and the World Bank has been of massive help to the world in this trying times.