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The strongest economies have offered support to developing countries

The strongest economies proposed increasing IMF reserves to provide more financial support to developing countries during the corona crisis.

The strongest economies have offered support to developing countries
Yazar: Tom Roberts

Yayınlanma: 21 Mart 2021 21:35

Güncellenme: 23 Kasım 2024 03:13

The strongest economies have offered support to developing countries

For the first time since 2009, the G7, which brings together seven major industrialized countries, proposed increasing the International Monetary Fund's (IMF) reserves to provide more financial support to developing countries during the corona crisis. During virtual discussions hosted by British Finance Minister Rishi Sunak, G7 finance chiefs supported a "new and significant" increase in Special Drawing Rights (SDRs). These are reserves that complement the existing reserves of IMF member states. However, they did not disclose the details of the proposal and any increase will have to be agreed by other member countries at the IMF's spring meeting in April. Special drawing rights, last issued in 2009 in response to the international response to the global financial crisis, could free up resources for developing countries to pay for coronavirus vaccines and food imports. At the same time, they would provide them with additional financial reserves. "Today's historic G7 agreement paves the way for important and coordinated action to support lower-income countries and ensure that no country lags behind in the global economic recovery," the British finance minister said.  
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