International Monetary Fund (IMF) chief Kristalina Georgieva said on Friday in an online press briefing that the coronavirus pandemic has driven the global economy into a downturn that will require massive funding to help developing nations.
She said, “It is clear that we have entered a recession that will be worse than in 2009 following the global financial crisis.”
With the worldwide economic “sudden stop,” the estimation of funds for the overall financial needs of emerging markets is $2.5 trillion, and that estimate is on the lower end.
Governments in emerging markets, which have suffered an exodus of the capital of more than $83 billion in recent weeks, can cover much of that, but “clearly the domestic resources are insufficient” and many already have high debt loads.
Georgieva said over 80 countries, mostly of low incomes, have already have requested emergency aid from the International Monetary Fund. She added that “We do know that their own reserves and domestic resources will not be sufficient,”
The chief of the IMF met with journalists after a virtual meeting with the Washington-based lender’s steering committee when she formally requested an increase in the rapid-deployment emergency facilities of the fund from their current level of ‘about $ 50 billion.
She also welcomed the $2.2 trillion economic package approved by the US Senate, saying “it is absolutely necessary to cushion the world’s largest economy against an abrupt drop the economic activities.”
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