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IMF proposes to deploy full $1 trillion lending capability to help nations battling COVID-19

The IMF Board has already permitted debt aid for 25 of its poorest members.

Describing the COVID-19 pandemic as a disaster like no different, International Monetary Fund head Kristalina Georgieva on Wednesday stated the worldwide physique is proposing to make use of all its $1 trillion lending capability to help nations battling the outbreak.

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“It is a crisis like no other. In scope, we are now in the worst recession since the Great Depression. We are experiencing a 3 percent contraction of global GDP, and 170 countries are going to see income per capita falling versus what we expected three months ago for 160—for them to go up,” Georgieva advised reporters at the beginning of the annual spring assembly of IMF and the World Bank right here.

In view of coronavirus disaster, the spring assembly is being held just about– the primary one within the historical past of IMF and the World Bank.

For the primary time within the historical past of the IMF, epidemiologists are offering inputs for its macroeconomic projections, and so they’re telling the IMF it might get even worse if the virus continues its spherical for longer, or if vaccines and therapy are gradual to come back round, the IMF Managing Director stated.

Georgieva stated that the IMF is proposing to deploy the total USD1 trillion lending capability to help nations coping with the super problem this disaster presents. It can also be proposing to double emergency monetary help.

“We started aiming for $50 billion, we are now at $100 billion, and in one short month, the month of April, our Board will have approved half of what is now exceptionally high demand for these resources, 102 countries asking for it. Already we disbursed for 15 in a record short time,” she stated.

The IMF Board has already permitted debt aid for 25 of its poorest members. “We will need to raise resources, and I’m so glad that during the G20 discussion this morning there was unanimous support for the Fund to do more, especially for those who need us more,” she stated.

“It is also very clear, that there are countries that need more support. And for those, we are determined to raise more concessional resources. We have full support from the membership, to go on the offensive, to raise more capacity for concessional funding from the IMF. Our target is to triple what we do for these countries,” she stated in response to a query.

The IMF, she stated, can also be very eager to discover different avenues, that will permit it now, within the urgency of the scenario, to do extra.

There is an rising consensus that current SDRs could possibly be deployed to assist in creating nations, she stated. “And we will assess, as the crisis evolves, where we are. The membership is very engaged, and very supportive,” she stated.

“We now have more than 30 countries applying for emergency financing. We are prioritizing rapidly responding to these requests, recognizing how critical this lifeline is for them. We are also very keen to see what more can be done,” the IMF Managing Director stated.

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