Global Recovery: The EU Disburses SDR141 Million to the IMF’s Catastrophe Containment and Relief Trust

IMF News, April 5, 2021

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Canonical URL: Global Recovery: The EU Disburses SDR141 Million to the IMF’s Catastrophe Containment and Relief Trust

The International Monetary Fund (IMF) received the European Union (EU)’s contribution of SDR 141 million (equivalent to €170 million or US$199 million) to the Catastrophe Containment and Relief Trust (CCRT).
This disbursement finances grants for the third tranche of CCRT debt service relief approved by the IMF´s Executive Board on April 1, 2021.

EU contribution reported on this disbursement: SDR 141 million (equivalent to €170 million or US$199 million).
The EU’s overall contribution to the CCRT reported: €183 million (SDR152 million or US$215 million).
With the third tranche, the IMF has provided about SDR519 million (about US$736 million or €626 million) in grants for debt relief to all 29 CCRT-eligible members since early 2020.
The EU, together with the EU institutions and its Member states, has committed more than half of the current CCRT pledges.
The EU stands ready to disburse its remaining grant contribution in support of additional debt service relief in the context of potential future CCRT tranches.

The CCRT provides grants for debt service relief to countries hit by catastrophic events, including public health disasters such as COVID-19.
The stated purpose of the debt relief initiative under the CCRT is to free up resources to meet exceptional balance of payments needs created by the disaster rather than having to allocate those resources to debt service.
The EU positions this contribution as supporting social services for the most vulnerable people, including access to essential healthcare and education for young people, including girls, and integrating debt relief into broader policy dialogue, financing strategies and actions to “build back better.”

CCRT-eligible countries are those eligible for concessional borrowing through the IMF's Poverty Reduction and Growth Trust (PRGT) and whose annual per capita gross national income level is below $1,175.
Vulnerable countries most seriously affected by the COVID-19 crisis benefit from the CCRT.

Jutta Urpilainen, European Commissioner for International Partnerships: “Through this contribution to the CCRT, Team Europe continues to stand in solidarity with its most vulnerable partners. In this difficult period, the resources freed up can provide social services for the most vulnerable people, such as access to essential healthcare and education for young people, including girls. Team Europe’s Global Recovery Initiative is working to provide debt relief and sustainable investment for the SDGs.”
IMF Managing Director Kristalina Georgieva: “The EU’s generous contribution of €183 million is critical to help the world’s most vulnerable countries cope with the impact of the COVID-19 crisis and continue providing health care, economic and social support for their people. I am grateful to the EU and its member states for their support and strong partnership. I urge other countries to contribute to the CCRT so we can in turn support our most vulnerable member countries.”

The EU frames the contribution as aligned with Commission President von der Leyen's proposal for a Global Recovery Initiative that links investments and debt relief to the Sustainable Development Goals.
The EU highlights its role as a global player in integrating debt relief into broader financing strategies and policy dialogue to support resilient recovery and social services in vulnerable countries.
The IMF emphasizes mobilizing additional contributions to expand debt service relief for CCRT-eligible members impacted by catastrophic events and public health disasters.

Press Release No. 21/100, April 5, 2021, IMF Communications Department.