IMF chief sees 'high degree of uncertainty' in global outlook

"It will continue to be so important, even more important, for us to be able to expand our capacity to support countries that have fallen behind," Georgieva said. The option of carrying out a new SDR allocation - something akin to a central bank printing money - had never been taken off the table by IMF members, she said, adding that some members continued to discuss it as a possible move.

Reuters | Updated: 18-01-2021 21:43 IST | Created: 18-01-2021 21:43 IST
IMF chief sees 'high degree of uncertainty' in global outlook

The head of the International Monetary Fund said on Monday the global economic outlook remained highly uncertain given the coronavirus pandemic, and a growing divergence between rich and poor countries required the IMF to find more resources. IMF Managing Director Kristalina Georgieva told reporters a new allocation of the IMF's own currency, Special Drawing Rights, would give countries more fiscal space to address the health crisis and accelerate moves to a digital and green economy.

Under outgoing President Donald Trump, the United States, the IMF's largest shareholder, has blocked such a move, arguing it would provide more resources to richer countries since the allocation would be proportionate to their shareholding. Swedish Finance Minister Magdalena Andersson, the new chair of the IMF's steering committee speaking at an online news conference with Georgieva, said it was clear the need for liquidity remained great, and she would consult with member countries on options for expanding liquidity.

Georgieva said the IMF had rapidly increased concessional financing to emerging market and developing economies, including through donation of some $20 billion in existing SDRs. That would continue to play an important role, but further steps were needed, she said. "It will continue to be so important, even more important, for us to be able to expand our capacity to support countries that have fallen behind," Georgieva said.

The option of carrying out a new SDR allocation - something akin to a central bank printing money - had never been taken off the table by IMF members, she said, adding that some members continued to discuss it as a possible move.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

Addressing conflict-related sexual violence at long last

... ...

Why unequal access to coronavirus vaccines is a threat to us all

... ...

India’s love affair with fossil fuels: the path to sustainable development?

... ...

Videos

Latest News

Japan's Terumo says makes syringe to draw 7 doses from Pfizer vaccine vials

Japans Terumo Corp said on Tuesday it has developed a new syringe that can get seven doses out of each vial of COVID-19 vaccine made by Pfizer Inc, at least one more than accessible with existing syringes.The health ministry approved the de...

Taapsee Pannu-starrer 'Looop Lapeta' to release on this date

The upcoming Bollywood film Looop Lapeta which will bring on screen a fresh pairing is slated to hit the theatres on October 22, 2021. The comic-thriller stars Taapsee Pannu and Tahir Raj Bhasin in the lead roles. Taapsee shared the release...

'The Queen's Gambit' to be adapted as stage musical

Following the huge success of the Netflix mini-series The Queens Gambit, Walter Tevis novel of the same name will be getting a stage musical adaptation. According to Variety, Level Forward has acquired the theatrical stage rights to the 198...

Williamson would be fit around the start of IPL, says Gary Stead

New Zealand head coach Gary Stead on Tuesday said that skipper Kane Williamson would possibly recover from his elbow injury around the start of the Indian Premier League IPL. Stead also said that New Zealand Cricket NZC would talk to Willia...

Give Feedback