World Bank IMF and Dev Agencies | |
World Bank IMF and Dev Agencies | |
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Friday, March 27, 2020 /03:49
PM / By Mondovisione / Header Image Credit: @IMFNews
International
Monetary and Financial Committee Chair Lesetja Kganyago and International
Monetary Fund Managing Director Kristalina Georgieva issued the following
statement following today's conference call of the International Monetary and
Financial Committee.
"We are in
an unprecedented situation where a global health pandemic has turned into an
economic and financial crisis. With a sudden stop in economic activity, global
output will contract in 2020. Member countries have already taken extraordinary
actions to save lives and safeguard economic activity. But more is needed.
Priority should be afforded to targeted fiscal support to vulnerable households
and businesses to accelerate and strengthen the recovery in 2021.
Although
the greatest health impact has been in advanced economies, emerging market and
developing countries, especially low-income countries, will be particularly
hard hit by a combination of a health crisis, a sudden reversal of capital
flows and, for some, a sharp drop in commodity prices. Many of these countries
need help to strengthen their crisis response and restore jobs and growth,
given foreign exchange liquidity shortages in emerging market economies and high
debt burdens in many low-income countries.
Strong and
coordinated policy actions, including at the multilateral level, are key to
effectively resolve this global crisis. To this end, IMFC members welcomed the
IMF's expeditious efforts to support an exceptionally high number of countries
requiring IMF emergency financing at the same time, as well as its close
cooperation with other international financial institutions, especially the
World Bank Group. The IMF stands ready to use its US$1 trillion financial
capacity to support its member countries.
Reflecting
the extraordinary challenges, the IMF has already taken action to provide
relief for debt repayments for its poorest members under the Catastrophe
Containment and Relief Trust and is being called upon to strengthen its crisis
response by enhancing access to its emergency facilities under the Rapid Credit
Facility and Rapid Financing Instrument. Going beyond its traditional lending
facilities, the IMF will explore additional options to help members that
experience foreign exchange shortages.
These issues will be discussed by the IMF's Executive Board in the coming weeks with a view to bringing a strong package of measures for the IMFC's consideration at the Spring Meetings. Our common goal is to make the IMF's crisis response even more effective in helping its members achieve a faster and stronger recovery."
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