The European Union said Monday that it will contribute 183 million euros (about 217.63 million U.S. dollars) to debt relief for 29 of the world's poorest and most vulnerable countries, Trend reports citing Xinhua.
The funds, which will be channeled through the IMF's Catastrophe Containment and Relief Trust (CCRT), allow these countries to increase their social, health, and economic spending in response to the COVID-19 crisis, the EU said in a press release.
The announcement comes a day after the Group of 20 countries backed the extension of the Debt Service Suspension Initiative through June 2021 to facilitate higher pandemic-related spending among the eligible countries.
The bloc said that previous results of the first two tranches of the CCRT relief showed that receiving countries were able to boost their projected 2020 priority spending by some 1.2 percentage points of GDP, with expenditure on health and social protection increasing, on average, by about a 0.5 percentage point.
Follow us on Twitter @AzerNewsAz