The Paris Club of international creditors has accepted a request from Kenya for a debt-servicing suspension from January to the end of June.
The Paris Club made statement on its website on its website on Monday, January 11.
“Kenya is committed to devote the resources freed by this initiative to increase spending in order to mitigate the health, economic and social impact of the COVID19-crisis,” the club stated.
The creditors added that in line with the agreed terms of the Debt Service Suspension Initiative (DSSI) of the G20 group of rich nations and big emerging powers, Kenya is also committed to seeking from other bilateral official creditors debt-servicing treatment.
Earlier in 2020, Kenya had declined to join the G20 coronavirus debt relief initiative but it later changed its mind. Finance Minister Ukur Yatani said in November that it was planning to defer around $690 million in debt payments.
According to Yatani, joining the initiative is important because it will help open doors for further funding from the International Monetary Fund and World Bank.
The IMF said in December that Kenyan authorities were continuing talks with the Fund on the remaining provisions of an IMF financing program for the East African country that could be presented to the IMF board in early 2021.
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