Search ForexCrunch

Reuters reports that “the International Monetary Fund views its $1 trillion in lending capacity as “quite substantial” to help members deal with the coronavirus pandemic, but further resources may be needed as the full brunt of the crisis reaches developing countries, its chief economist told Reuters on Tuesday.”

Gita Gopinath said 100 of the IMF’s 189 members, of whom half were low-income countries, had now contacted the global lender about receiving emergency funding to beef up their efforts to contain the spread of the novel coronavirus and mitigate its economic impact.

She welcomed an agreement by international creditors to suspend debt payments for the poorest countries through the end of the year as a “very, very good step,” but said debt relief measures might have to be extended into 2021 since the worst of the pandemic’s effects had not yet been felt in many of the poorest countries.

Key notes

  •  IMF chief economist Gopinath says 100 countries, of which half are low-income, have sought emergency aid from IMF for pandemic relief – Reuters interview
  •  IMF gopinath says agreement by international bilateral creditors to suspend debt payments for poorest countries is “very, very good step”.
  •  IMF Gopinath says full brunt of pandemic yet to hit many developing countries, emerging markets; debt relief may have to be extended into 2021.
  •  IMF Gopinath says IMF views its $1 trillion lending capacity as “quite substantial”, but more resources could be needed if things get worse.
  •  IMF Gopinath says allocation of IMF’s special drawing rights (SDR) is another useful form of support, will be discussed during virtual spring meetings this week.

More to come…