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IMF approves $130 mln in aid to three Ebola-hit countries

The International Monetary Fund (IMF) logo is seen during a news conference in Bucharest, March 25, 2009. PHOTO BY REUTERS/Bogdan Cristel
27/09/1014

WASHINGTON (Reuters) - The International Monetary Fund on Friday approved $130 million in aid to Guinea, Liberia and Sierra Leone to help them deal with the economic impact from the Ebola virus.

"The Ebola outbreak in Guinea, Liberia, and Sierra Leone has already cost too many lives," IMF Managing Director Christine Lagarde said in a statement. "This humanitarian crisis could also have deep economic consequences."

The IMF said the financial aid would become available immediately, and would be in addition to assistance the countries are receiving under existing IMF programs.

The Fund said its preliminary estimates indicated the crisis could shave at least 3 percentage points from economic growth in Liberia and Sierra Leone this year and about 1.5 percentage point off growth in Guinea.

It said the countries would need "additional and sizable" budgetary support from bilateral and multilateral sources to meet the challenges posed by the outbreak of the virus, which has cut into tax revenues and put demands on public spending. It has estimated the total needed to close their financing gaps at about $300 million.

The three countries are among the poorest in West Africa and the hardest-hit by the worst Ebola epidemic since 1976, which has killed nearly 3,000 people.

The funds represent an expansion of current IMF programs. Guinea already has a $200 million program from the IMF, while Liberia is getting about $80 million and Sierra Leone about $96 million.

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