IMF Working to Support Georgian Economy amid Coronavirus Crisis

Henrietta Strickland
April 4, 2020

The International Monetary Fund (IMF) has completed discussions with Senegal, following its request that the IMF disburse $221-million in emergency funding.

"We believe the Fund should take additional, deeper actions to expand debt relief, aid to the poorest countries in the world as well as offer greater relief to the so-called Middle Income Countries", wrote Jubilee USA Executive Director Eric LeCompte in a letter to the head of the IMF, Kristalina Georgieva.

The IMF board is due to approve the decision to make available $147-million through a rapid financing instrument and $73-million under a rapid credit facility by mid-April. "And I support the G20 to urgently work on further easing the debt burden of our poorest members".

Thank you to the Saudi G20 presidency for calling this extraordinary meeting.

"The outbreak of the COVID-19 pandemic has affected the Georgian people and worsened the outlook for the Georgian economy".

Emerging markets, which have suffered an exodus of capital of more than $83 billion in recent weeks, face financing needs of $2.5 trillion, which will require some outside assistance, she said.

The IMF and other multilateral financial institutions are seeking to ramp up support for vulnerable African countries so they can better fight the disease, which experts say could easily overwhelm their under-resourced health systems. She said the scheme will also enable it build up capacity to serve poorest members; and help countries experiencing foreign exchange shortages, including possibly by short-term liquidity line.

She also said: "The U.S. recently approved the doubling of the New Arrangements to Borrow, and our Executive Board yesterday agreed on a new round of bilateral borrowing to secure the IMF's $1 trillion lending capacity". The total amount of funds requested is over $ 20 billion, an IMF spokesman said in a telephone briefing to journalists, BGNES reported.

Other reports by Click Lancashire

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