IMF announces $50 billion in emergency funding : Corona Virus

IMF announces $50 billion in emergency funding : Corona Virus

The International Monetary Fund (IMF) is making available $50 billion in emergency funding that includes low- and no-interest loans that could aid poorer countries with weak health systems respond to the epidemic, Managing Director Kristalina Georgieva said on March 4.

The 24-member International Monetary and Financial Committee in a statement called on the Fund "to use all its available financing instruments to help member countries in need."

Georgieva made the statement after a call with the IMF's steering committee.

The global spread of the novel coronavirus will wipe out any hope of stronger growth in 2020, she told a news briefing.

She added that a third of the Fund's 189 member countries were now affected.

The Fund now expects 2020 world growth will be below the 2.9 percent rate for 2019, and revised forecasts will be issued in the coming weeks, Georgieva said at a news briefing.

The changed forecast would represent a more than 0.4 percentage point drop from the 3.3 percent growth the IMF had estimated for 2020 in January as US-China trade tensions eased.

"Global growth in 2020 will dip below last year's levels, but how far it will fall and how long the impact will be is still difficult to predict," Georgieva said.

She declined to say whether the escalating health crisis could push the world into a recession.

Georgieva and World Bank President David Malpass underscored the importance of coordinated action to limit the economic and human impact of the virus.

The World Bank on March 3 said it was providing $12 billion in immediate funds to help developing countries improve their health services, disease surveillance, and access to medical supplies.