The Executive Board of the International Monetary Fund (IMF) has approved a disbursement of US$130 million to Mauritania, APA has learned.

The disbursement in question will help meet Mauritania's urgent balance of payments needs resulting from the Covid-19 crisis, the IMF explained in a press release, estimating these needs at nearly $370 million.

Funds allocated to Mauritania will enable it to increase spending on health services and social protection programmes, in addition to helping to catalyze additional donor support.

Mayor has so far recorded 7 cases of coronavirus, 6 of which have recovered and one death. But the restrictions put in place to prevent the disease have all but wiped out the small activities that sustain a large number of households.

Which leads the IMF to say that Mauritania's economy is expected to contract by 2% this year and that its overall budget deficit could reach 3.4% of GDP.

The Bretton Woods institution stressed that the Covid-19 pandemic is having a dramatic human, economic and social impact on a country whose short-term economic prospects have deteriorated rapidly and remain subject to considerable uncertainty.

Additional concessional and grant financing from the international community will be essential to fill the remaining financing gap and help Mauritania respond effectively to the Covid-19 crisis, the IMF concluded.