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

"The sole objective behind the decision is to help them weather the economic fallout of the COVID-19 pandemic," ADFD said in a statement, quoted WAM. It is pertinent to inform that the fund provides financial assistance to companies in the UAE and to developing countries, which has included Pakistan, Egypt, Sudan and Ethiopia.

As per details, the initiative over the payment of installments and interests that covers the period from January 1 to December 31, 2020 will be implemented by ADFD in accordance with the national law and internal procedures.

"At a time when the world is reeling under the effect of the pandemic that has affected every area – from economy and society to health and education – it is imperative for us to support particularly those that need it most, especially the low-income countries. The initiative is so crucial to ensure their financial stability and that they steadily follow the path to growth and sustainable economic development," said Mohammed Saif Al Suwaidi, Director General of the Fund.

The move is part of 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.