Coronavirus pandemic now a global economic and financial crisis, say IMFC Chair Lesetja Kganyago and IMF boss Kristalina Georgieva

1,040FollowersFollow

The coronavirus pandemic has now turned into a global economic and financial crisis and strong and immediate actions are needed to minimize the impact, the Chairperson of the International Monetary and Financial Committee, Lesetja Kganyago, and the Managing Director of the International Monetary Fund Kristalina Georgieva said in a joint statement received by TODAY NEWS AFRICA in Washington D.C. on Friday. The IMFC is the governing body of the IMF.

The IMFC chair and IMF boss said with a sudden stop in economic activity, global output will contract in 2020 and strong policies would be needed for a recovery in 2021.

“Priority should be afforded to targeted fiscal support to vulnerable households and businesses to accelerate and strengthen the recovery in 2021,” they wrote in their statement following Friday’s conference call of the International Monetary and Financial Committee.

Read full statement below.

“We are in an unprecedented situation where a global health pandemic has turned into an economic and financial crisis. With a sudden stop in economic activity, global output will contract in 2020. Member countries have already taken extraordinary actions to save lives and safeguard economic activity. But more is needed. Priority should be afforded to targeted fiscal support to vulnerable households and businesses to accelerate and strengthen the recovery in 2021.

Although the greatest health impact has been in advanced economies, emerging market and developing countries, especially low-income countries, will be particularly hard hit by a combination of a health crisis, a sudden reversal of capital flows and, for some, a sharp drop in commodity prices. 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.

Strong and coordinated policy actions, including at the multilateral level, are key to effectively resolve this global crisis. To this end, IMFC members welcomed the IMF’s expeditious efforts to support an exceptionally high number of countries requiring IMF emergency financing at the same time, as well as its close cooperation with other international financial institutions, especially the World Bank Group. The IMF stands ready to use its US$1 trillion financial capacity to support its member countries.

Reflecting the extraordinary challenges, the IMF has already taken action to provide relief for debt repayments for its poorest members under the Catastrophe Containment and Relief Trust and is being called upon to strengthen its crisis response by enhancing access to its emergency facilities under the Rapid Credit Facility and Rapid Financing Instrument. Going beyond its traditional lending facilities, the IMF will explore additional options to help members that experience foreign exchange shortages.

These issues will be discussed by the IMF’s Executive Board in the coming weeks with a view to bringing a strong package of measures for the IMFC’s consideration at the Spring Meetings. Our common goal is to make the IMF’s crisis response even more effective in helping its members achieve a faster and stronger recovery.”

Simon Ateba
Simon Ateba
Based in Washington, District of Columbia, United States of America, Simon leads a brilliant team of reporters, freelance journalists, analysts, researchers and contributors from around the world to run TODAY NEWS AFRICA as editor-in-chief. Simon Ateba's journalistic experience spans over 10 years and covers many beats, including business and investment, information technology, politics, diplomacy, human rights, science reporting and much more. Write him: simonateba@todaynewsafrica.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Now

U.S. President-elect Joe Biden says he’s concerned about escalating violence in Ethiopia and worries about civilians

U.S. President-elect Joseph R. Biden Jr. on Monday said he was concerned about the escalating violence in Ethiopia. In a call with the United Nations...

U.S. President-elect Joe Biden speaks with Presidents of Kenya, Argentina and Costa Rica, and UN chief

U.S. President-elect Joseph R. Biden Jr. on Monday spoke with world leaders, including President Uhuru Kenyatta of Kenya, the second African leader after his...

Ethiopian forces set to take Tigrayan capital, as many fear mass civilian deaths

The Ethiopian military said late on Friday that government forces were set to take control of Mekelle, the regional capital of Tigray, even as...

Biden to use walking boot for several weeks after sustaining fractures while playing with dog, doctor says

U.S. President-elect Joe Biden sustained a sprain of his right foot while playing with his dog, Major, his doctor said on Sunday. "Initial X-rays are...

Nigerian-American Adewale Adeyemo makes history as President-elect Biden announces members of his economic team

U.S. President-elect Joe Biden on Monday announced key members of his economic team, including Janet Yellen as Secretary of the Treasury; Neera Tanden as...

U.S. House members ask Trump admin to put on hold deportation of asylum-seekers from Cameroon and other African countries

United States House of Representatives members on Tuesday called on the Trump administration to put on hold the deportation, slated for Wednesday, of asylum-seekers...

President-elect Joe Biden slips while playing with dog, twists ankle

U.S. President-elect Joseph R. Biden Jr. slipped while playing with his dog, Major, and twisted his ankle. The President-elect is being examined at Delaware Orthopaedic...

Biden says November “grim” jobs report shows “economy stalling” and “urgent action” is required

U.S. President-elect Joseph R. Biden Jr. on Friday said the the November 'grim' jobs report shows "an economy that is stalling" and an urgent...

U.S. ‘appalled by persecution of pro-democracy advocates in Hong Kong’

The United States government said on Thursday it was "appalled by the Hong Kong government’s political persecution of Hong Kong’s courageous pro-democracy advocates." "The...

In first sit down interview since defeating President Trump, President-elect Biden identifies the four crises he’ll face

U.S. President-elect Joseph R. Biden Jr. on Thursday identified the four crises his incoming administration will face when he and Vice President-elect Kamala Harris...

U.S. must stop vilifying immigrants, says Biden homeland security nominee Alejandro N. Mayorkas

The United States "must stop vilifying" immigrants, President-elect Joe Biden's nominee for Secretary of Department of Homeland Security Alejandro N. Mayorkas said on Thursday,...

Biden: We can and must do more for people with disabilities – statement

Statement by President-elect Joe Biden on United Nations International Day of Persons with Disabilities Today, Jill and I join with communities, advocates, and activists around...

Democrats and Republicans finally get serious about COVID-19 relief deal before Christmas

The Democrats and the Republicans are finally serious about reaching a COVID-19 deal before Christmas, as new cases increase and hospitalizations and deaths expand...

52,000 people have died from COVID-19 in Africa from 2.1 million infections, the lowest death toll in the world

More 52,500 people have died from COVID-19 in Africa from over 2.1 million infections, according to the latest data released by the Africa CDC. The...

Biden says November “grim” jobs report shows “economy stalling” and “urgent action” is required

U.S. President-elect Joseph R. Biden Jr. on Friday said the the November 'grim' jobs report shows "an economy that is stalling" and an urgent action is required from Congress. "It confirms we remain in the midst of one of the worst economic and jobs crises in modern history," Biden said in a statement. "The situation requires urgent action. Americans need help and they need it now. I...
error: Alert: Content is protected !!
Share
Tweet
WhatsApp
Pin
Share