Coronavirus: IMF to deploy $1 trillion to support Nigeria, other member countries

Cheryl Sanders
March 27, 2020

In a joint statement with its Financial Committee Chair, Lesetja Kganyago, the Managing Director of the Fund, Kristalina Georgieva, said coronavirus, which began as a "global health pandemic, has turned into an economic and financial crisis".

The leaders also asked their finance ministers and central bank governors to coordinate on a regular basis to develop a G20 action plan in response to COVID-19 and work closely with worldwide organizations to swiftly deliver the appropriate global financial assistance.

"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", it added.

Despite the largest effects seen in advanced economies, the emerging and developing economies and low-income countries will be hit by the crisis hardly, it urged.

"These countries are the main focus of our attention".

G20 leaders did not explicitly address the issue, but in their joint statement said they supported International Monetary Fund and World Bank efforts to help countries in need by "using all instruments to their fullest extent".

Earlier on Thursday, the G-20 countries conducted an emergency session to decide the measures to be taken considering the global impact of the coronavirus disease (COVID-19) pandemic outbreak, especially on the economic front.

Huge pressure on emerging markets suffering from lost commerce has ensued since the virus began to take hold globally, reducing exports and substantial capital outflows.

The IMF said it has already taken action to provide relief for debt repayments for its poorest members under the Catastrophe Containment and Relief Trust.

We will get through this crisis together. She said the size of the contraction and how fast it will recover will depend on how quickly COVID-19 is contained.

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