IMF’s Georgieva seeks coordinated and synchronized global fiscal stimulus

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Photo by ID1974/Shutterstock.com

The International Monetary Fund’s managing director Kristalina Ivanova Georgieva-Kinova called for a coordinated global fiscal stimulus and said the lender stands reading to use its USD 1 trillion lending capacity to help its 189 members to ease the economic shock from the spread of the coronavirus, or Covid-19, RTT News reports.

World Bank head Kristalina Ivanova Georgieva-Kinova. Photo by ID1974/Shutterstock.com

In a blog post on the IMF website on March 16, Bulgariaʼs Georgieva, an economist and professor as well as head of the IMF said, “Additional fiscal stimulus will be necessary to prevent long-lasting economic damage.”

Fiscal measures that involve increasing healthcare spending, and containment measures such as social distancing and early monitoring, will help slow the rate of infection and virus spread, she noted.

Further, governments should extend measures such as policies including increased paid sick leave and targeted tax relief to businesses and people, she added.

The lender could provide as much as USD 50 billion to emerging and developing economies, initially, through flexible and rapid-disbursing emergency response toolkit for debt relief, and up to USD 10 bln to low-income members through its concessional financing facilities, which carry zero interest rates.

The IMF has already received interest from about 20 more countries, she was quoted as saying by RTT News.

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