Abu Dhabi Fund suspends debt repayments of low-income countries for a year

Initiative seeks to alleviate financial impact on COVID-19

  
Bundles of UAE currency. Image used for illustrative purpose.

Bundles of UAE currency. Image used for illustrative purpose.

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The Abu Dhabi Fund for Development (ADFD) is suspending for a year the debt service repayments of some developing countries and private businesses.

The initiative, which is applicable to the instalments and interests from January 1 to December 31 this year, is intended to alleviate the financial impact of the coronavirus pandemic on low-income nations.

“At a time when the world is reeling under the effect of the pandemic that has affected every area – from economy and society to health and education – it is imperative for us to support particularly t hose that need it most, especially the low-income countries. The initiative is so crucial to ensure their financial stability and that they steadily follow the path to growth and sustainable economic development,” said Mohammed Saif Al Suwaidi, director general of the Fund.

The Fund was established for the Abu Dhabi government to extend development aid to countries in the developing world through loans and grants.

The Fund has recently allotted 1 billion UAE dirhams in concessionary loans for companies in the UAE, to enable them to continue operating during the pandemic and eventually recover from the crisis.

It also announced that it would contribute to the $10 billion support fund earlier committed by the Arab Coordination Group. The initiative includes technical assistance, grants, concessional loans, financing, trade insurance and capacity development programs.

(Writing by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

#ADFD #ABUDHABI #DEBT

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