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Mon 13 Jul 2020 12:10 PM

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Abu Dhabi fund suspends debt service repayment for countries, companies

The fund, which supports sustainable economic development at home and abroad, said the decision was made to support low-income countries during the Covid-19 pandemic

Abu Dhabi fund suspends debt service repayment for countries, companies

ADFD said the move is in line with the UAE Government’s support of the G20 plan - launched by the World Bank - to help the developing countries to meet their financing needs, to alleviate their debt burdens and to effectively address the impact of the Covid-19 pandemic on the region and beyond.

Abu Dhabi Fund for Development has decided to suspend debt service repayments during 2020 for eligible countries, as well as individual businesses, in the developing world.

The fund, which supports sustainable economic development at home and abroad, said the decision was made to support low-income countries during the Covid-19 pandemic.

"The sole objective behind the decision is to help them weather the economic fallout of the Covid-19 pandemic," Abu Dhabi Fund for Development (ADFD) said, in a statement.

The initiative, which covers the period from January 1 to December 31, 2020 will be implemented by Abu Dhabi Fund for Development in accordance with the national law and internal procedures.

ADFD said the move is in line with the UAE Government’s support of the G20 plan - launched by the World Bank - to help the developing countries to meet their financing needs, to alleviate their debt burdens and to effectively address the impact of the Covid-19 pandemic on the region and beyond.

The fund’s main objective is to drive sustainable economic growth both at home and in developing nations across the world by supporting key sectors such as education, health, energy, transport, housing, agriculture and industry.

To meet this objective, it provides concessionary loans to national companies, as well as to the governments of the developing countries, to help them implement their developmental agenda by financing strategic projects which have a great impact on the overall economy and communities.

ADFD recently earmarked AED 1 billion in concessionary loans for national companies so that they can continue to operate and eventually overcome the crisis.

In a similar move to help the developing economies ride over the current crisis, the fund recently announced that it would contribute to an AED36.7bn ($10 billion) support fund, committed by institutions within the Arab Coordination Group. The package includes technical assistance, grants, concessional loans, financing, trade insurance and capacity development programmes.

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