Myanmar has sought the loan from IMF under its Rapid Credit Facility (RCF) and Rapid Financing Instrument (RFI) which offers quick loan facility at concessional rates for Low Income Countries.
The loan will be used to cover deficit incurred by the government due to increased spending on social security, health services and economic assistance in the wake of Corona pandemic outbreak.
According to a report of the IMF, Myanmar has been deeply affected by the outbreak of Corona pandemic. It has reported sharp decline in tourist arrival, supply chain disruption in the garment sector, losses in the SMEs, exports and foreign remittances.
The Myanmar government has developed a COVID 19 Economic Relief Plan (CERP) with several fiscal and monetary measures including a 70 million dollar COVID 19 fund to provide soft loans to garment and tourism sector businesses and industries. Myanmar has decided to allocate up to 10 percent of its current budget to fight COVID-19.
Myanmar has report 206 Corona positive cases and 6 deaths till Tuesday. It had reported the first Corona positive case on March 23. On May 13, the government of Myanmar extended restrictions on public gatherings of more than 5 people, closure of pre-schools and ban on international flights till May 31.