May use trillion dollar war chest for coronavirus outbreak, IMF says
Describing the Covid-19 pandemic as a crisis like no other, The director of the International Monetary Fund, Kristalina Georgieva, said on Wednesday that the international body proposed to use all of its trillion-dollar lending capacity to support countries battling the epidemic.
“It’s a crisis like no other. In its magnitude, we are now in the worst recession since the Great Depression.
We are experiencing a 3% contraction in global GDP, and 170 countries are going to see their per capita income drop from what we expected three months ago for 160 – for them to increase, “Georgieva told reporters at the start. of the Spring Annual Meeting of the IMF and the World Bank here.
Given the coronavirus crisis, the spring meeting is being held virtually – the first in IMF and World Bank history.
For the first time in IMF history, epidemiologists are providing data for its macroeconomic projections, and they tell the IMF it could get even worse if the virus continues its cycle longer, or if vaccines and treatments are slow in coming. . around, said the managing director of the IMF.
Georgieva said the IMF is proposing to deploy the total lending capacity of $ 1 trillion to help countries cope with the enormous challenge of this crisis. It also proposes to double the emergency financial assistance.
“We started aiming for $ 50 billion, we are now at $ 100 billion, and in a short month, April, our board of directors will have approved half of what is now an exceptionally request. high for these resources, 102 countries have already requested them. we paid 15 in record time, ”she said.