Appeals for granting emergency loans from the International Monetary Fund have been made by almost half of the countries of the world to help them to counter the sharp economic crisis that has been imposed by the global coronavirus pandemic.
Kristalina Georgieva, IMF’s managing director, said during a a meeting of G20 finance ministers and central bank governors that requests for emergency assistance have been filed with the IMF by more than 100 countries so far.
The “full toolbox and $1 trillion firepower” of lending capacity is ready to be unleashed by the IMF, she said while noting that emergency funding from the Bank have so far been extended to 10 countries. She informed that almost half of the remaining countries will be delivered the requested financial assistance by the end of April.
The comments from the IMF chief cam soon after the international body issued a stern warning of a n impending recession for the global economy that will be the worst tat the world economy has seen since the Great Depression of the 1930s. The IMF urged the governments and health officials to work in cohesion in order to prevent a further worsening of the crisis.
“Everything is on the table in terms of measures we can take,” and encouraged central banks to “spend as much as you can,” said the IMF chief. “But keep the receipts,” she added. “We don’t want accountability and transparency to take a back seat in this crisis,” she added.
The IMF had developed a reputation for imposing tough conditions on countries that ask for emergency funding from it, said the IMF boss sin an interview to a television channel. But she said that this time, “we are asking for one thing only: Please pay your doctors and nurses, make sure that your health systems are functioning, and that your vulnerable people and first [responders] are protected.”
The global economy will see a contraction of 3 per cent in 2020, the IMF said predicting the extent of economic hit form the coronavirus pandemic. It said that this recession will be a much deeper one compared to the one that the global economy had seen after the 2008 global financial crisis that had originated in the United States because of a subprime lending crisis. The latest forecast for the global economy by the IMF was completely opposite to what it had predicted back in January en the global body had anticipated global growth for 2020 to be about 3.3 per cent.
If policymakers fail to coordinate a global response to the virus, there is a possibility that the global recession will also get extended till into 2021, the fund said.
(Adapted from CNN.com)