G7 eyes allocating 0 billion from IMF funds to COVID-ravaged nations: US

G7 eyes allocating $100 billion from IMF funds to COVID-ravaged nations: US



The United States and other Group of Seven nations are considering reallocating $100 billion from the Monetary Fund’s warchest to help countries struggling most to cope with the COVID-19 crisis, the White House said.


The issue will be on the table when leaders discuss how to help steer the world’s recovery from the pandemic at a three-day summit in Cornwall, southwestern England, which begins on Friday.





“The United States and our partners are actively considering a global effort to multiply the impact of the proposed Special Drawing Rights (SDR) allocation to the countries most in need,” the U.S. president’s office said.


“At potentially up to $100 billion in size, the proposed effort would further support health needs – including vaccinations – and help enable greener, more robust economic recoveries in vulnerable countries, and promote a more balanced, sustained, and inclusive global recovery.”


The U.S. has targeted the SDR allocation to be distributed around the “late (northern) summer” and on Friday said: “We strongly support the effort to recycle SDRs to further support health needs.”


SDRs are the IMF’s reserve asset, and are exchangeable for dollars, euros, sterling, yen and Chinese yuan or renminbi.


French President Emmanuel Macron on Thursday called on the other nations to find an agreement on reallocating $100 billion in SDRs to African states.


World finance chiefs agreed in April to boost SDRs by $650 billion and extend a debt-servicing freeze to help developing countries deal with the pandemic, although only $34 billion was to be allocated to Africa.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *