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Title Page
CATASTROPHE CONTAINMENT AND RELIEF TRUST—THIRD TRANCHE OF DEBT SERVICE RELIEF IN THE CONTEXT OF THE COVID-19 PANDEMIC
March 18, 2021
Executive Summary
On March 26, 2020, the Executive Board approved changes to the Catastrophe Containment and Relief Trust (CCRT) to enable the Fund as Trustee of the CCRT to provide grants for debt service relief to its poorest and most vulnerable members to assist them in their efforts to tackle the COVID-19 pandemic and its economic repercussions. To date, the Executive Board has approved two six-month tranches of debt service relief to all 29 CCRT-eligible countries with eligible debt service to the Fund, covering all debt service falling due from April 14, 2020 to April 13, 2021.1,2
This paper proposes that the Executive Board approve the disbursement of a third tranche of CCRT debt service relief to 28 of the 29 CCRT-eligible members, covering the period April 14, 2021 through October 15, 2021, given staff’s assessment that sufficient financial resources are available.3,4 In this context, the paper also provides brief updates for each CCRT-eligible country on its policy responses to the pandemic and on staff’s assessments of these policies, the use of resources freed up by debt service relief, and the implementation of governance safeguards commitments. The paper also provides an update on the finances of the CCRT and ongoing fundraising efforts. Based on grant pledges and disbursements to date, additional resources are urgently needed to extend CCRT debt relief beyond the proposed third tranche while leaving the CCRT adequately funded for future needs.
Approved By
Christian Mumssen, Seán Nolan, and Bernhard Steinki,
Prepared by the Finance Department, the Legal Department, and the Strategy, Policy, and Review Department, with country annexes provided by Area Departments. The team was led by Daehaeng Kim (SPR), Linda Kaltani (FIN), and Gabriela Rosenberg (LEG), and comprised Lukas Kohler, Maxym Kryshko, Tomohide Mineyama (SPR), Elena Budras, Niklas Westelius, Courage Gumbanjera, Elena Liu, Elodie Goirand, Mariel Acosta (FIN), Kyung Kwak, Gomiluk Otokwala and Amira Rasekh (LEG). Khamza Sharifzoda (SPR) provided research assistance and Merceditas San Pedro-Pribram and Phyo Zin (SPR) provided administrative support.
Contents
RECENT DEVELOPMENTS: COVID-19 PANDEMIC AND CCRT DEBT SERVICE RELIEF
CCRT-ELIGIBLE COUNTRIES: POLICY RESPONSE AND STAFF ASSESSMENT
FUNDING STATUS OF THE CCRT AND PROPOSAL FOR A THIRD TRANCHE OF DEBT RELIEF
BOXES
1. Recent CCRT-Eligible Members’ Fund Engagement
TABLES
1. Eligible Countries and Eligible Debt Service Relief for CCRT Tranches
2. Contributions to the CCRT
3. CCRT Countries: Recent Fund Engagement
ANNEXES
I. Islamic Republic of Afghanistan: Update for CCRT Debt Relief
II. Benin: Update for CCRT Debt Relief
III. Burkina Faso: Update for CCRT Debt Relief
IV. Burundi: Update for CCRT Debt Relief
V. Central African Republic: Update for CCRT Debt Relief
VI. Chad: Update for CCRT Debt Relief
VII. Union of the Comoros: Update for CCRT Debt Relief
VIII. Democratic Republic of the Congo: Update for CCRT Debt Relief
IX. Djibouti: Update for CCRT Debt Relief
X. The Federal Democratic Republic of Ethiopia: Update for CCRT Debt Relief
XI. The Gambia: Update for CCRT Debt Relief
XII. Guinea: Update for CCRT Debt Relief
XIII. Guinea-Bissau: Update for CCRT Debt Relief
XIV. Haiti: Update for CCRT Debt Relief
XV. Liberia: Update for CCRT Debt Relief
XVI. Republic of Madagascar: Update for CCRT Debt Relief
XVII. Malawi: Update for CCRT Debt Relief
XVIII. Mali: Update for CCRT Debt Relief
XIX. Republic of Mozambique: Update for CCRT Debt Relief
XX. Nepal: Update for CCRT Debt Relief
XXI. Niger: Update for CCRT Debt Relief
XXII. Rwanda: Update for CCRT Debt Relief
XXIII. Democratic Republic of São Tomé and Príncipe: Update for CCRT Debt Relief
XXIV. Sierra Leone: Update for CCRT Debt Relief
XXV. Solomon Islands: Update for CCRT Debt Relief
XXVI. Republic of Tajikistan: Update for CCRT Debt Relief
XXVII. United Republic of Tanzania: Update for CCRT Debt Relief
XXVIII. Togo: Update for CCRT Debt Relief
XXIX. Republic of Yemen: Update for CCRT Debt Relief
Where debt service falling due to the Fund is referenced, this comprises debt service falling due to the General Resources Account and the Poverty Reduction and Growth Trust (PRGT).
Chad did not have eligible debt service falling due during the first period from April 14, 2020 to October 13, 2020 (see Table 1).
Tanzania does not have eligible debt service falling due during the period from April 14, 2021 to October 15, 2021 (see Table 1).
Given the flexibility provided in the Trust Instrument, the duration of the third tranche is proposed to be two business days longer than six months to accommodate two payments (totaling close to SDR 7.4 million) by two eligible members (Yemen and Malawi) which fall due on October 14 and October 15, 2021, respectively.
