IMF sees reversal in capital flows out of emerging markets

The International Monetary Fund on Thursday said it estimates that emerging market economies have raised some $77 billion in debt in April and May, partially reversing massive capital outflows of $100 billion seen after the coronavirus outbreak.

IMF Managing Director Kristalina Georgieva told a UN conference the Fund had provided $22 billion in emergency financing to 60 of the 103 countries that had asked for help, while offering grants to cover IMF debt service payments for 27 of its poorest members for six months.

African Union special envoy Tidjane Thiam told the conference a Group of 20 debt relief initiative for the poorest countries through the end of the year was a good start, but a longer debt standstill of two years was needed.