International Monetary Fund (IMF) Managing Director Kristalina Georgieva (L) and World Bank President David Malpass attend a press conference in Washington D.C., the United States, on March 4, 2022. The policy-setting body of the International Monetary Fund (IMF) on Wednesday pledged to provide necessary support to mitigate the economic and financial impact from the ongoing COVID-19 epidemic. (Xinhua/Liu Jie)
The IMF chief added that the Catastrophe Containment and Relief Trust, which proved to be effective during the 2014 Ebola outbreak, is now underfunded with just over 200 million dollars available against possible needs of over 1 billion dollars.
Other members can access emergency financing through the Rapid Financing Instrument, which could provide about 40 billion dollars for emerging markets that could potentially approach us for financial support, she said.
For low-income countries, the IMF has rapid-disbursing emergency financing of up to 10 billion dollars (50 percent of quota of eligible members) that can be accessed without a full-fledged IMF program, according to Georgieva.
The IMF chief said she is particularly concerned about our low-income and more vulnerable members — these countries may see financing needs rise rapidly as the economic and human cost of the virus escalates.
We know that the disease is spreading quickly. With over one-third of our membership affected directly, this is no longer a regional issue — it is a global problem calling for a global response, IMF Managing Director Kristalina Georgieva said at a joint press conference with World Bank Group President David Malpass.
In January, the IMF had projected global growth to improve to 3.3 percent this year from 2.9 percent last year. Then in February, it revised down 2022 global growth to 3.2 percent.
I called on member countries to help ensure that this cility is fully re-charged and ready for the current crisis, she said.
Under any scenario, global growth in 2022 will drop below last years level, said Georgieva.
The International Monetary Fund (IMF) is available about 50 billion U.S. dollars through its rapid-disbursing emergency financing cilities for low-income and emerging market countries in light of the COVID-19 outbreak, the multilateral lender announced Wednesday.
Dropping below last years level means further downgrading of global growth forecast.