The Executive Board of the International Monetary Fund (IMF) has approved the largest expansion of the organization’s funds for $650 billion, if approved by the board of governors from representatives of the fund’s member countries, the funds can be allocated by the end of August, IMF Managing Director Kristalina Georgieva said, Report informs referring to the IMF website.
“The IMF Executive Board yesterday concurred in my proposal for a new general SDR allocation equivalent to $650 billion – the largest allocation in the IMF’s history – to address the long-term global needs for reserves during the worst crisis since the Great Depression. I will now present the new SDR allocation proposal to the IMF’s Board of Governors for their consideration and approval. If approved, we expect the SDR allocation to be completed by the end of August,” she noted.
“This is a shot in the arm for the world. The SDR allocation will boost the liquidity and reserves of all our member countries, build confidence, and foster the resilience and stability of the global economy. In 2009, an SDR allocation contributed significantly to recovery from the global financial crisis and I am confident that this new allocation will have a similar benefit now. The SDR allocation will help every IMF member country – particularly vulnerable countries – and strengthen their response to the COVID19 crisis,” she added.
“We will maintain active engagement with our membership in the months ahead to identify viable options for voluntary channeling of SDRs from wealthier members to support our poorer and more vulnerable countries to help their pandemic recovery and achieve resilient and sustainable growth, which will also help boost global economic recovery,” Georgieva said.