IMF Offers Special Loan for Tsunami-Hit Countries
Wednesday, January 5, 2005
The International Monetary Fund (IMF) Managing Director Rodrigo Rato offered special relief funds for the countries victim of the tsunami disaster. The money is, however, in the form of a loan. The IMF has been present in the area on various occasions.
The IMF offered a one billion U.S. dollar loan. The money would be given as Emergency Natural Disaster Assistance facility, and would be repaid in full and with interests within 3ΒΌ to 5 years.
The money could help the area tremendously, but since it is a loan as opposed to an outright donation, it may not be as helpful. The loan, some fear, may not lead to economic stability in the long run. Despite the possible long term effects, the governments of the tsunami torn nations may simply have no choice but to accept the offer.