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The International Monetary Fund (IMF) is ready to mobilize $1 trillion lending capacity to aid member countries in the face of the coronavirus outbreak, Managing Director Kristalina Georgieva announced in a blog post on Monday, per Reuters.

Key takeaways

“Additional fiscal stimulus will be necessary to prevent long-lasting economic damage from coronavirus.”

“Case for coordinated and synchronized global fiscal stimulus is becoming stronger by the hour.”

“IMF has received interest from about 20 more countries for ongoing loan programs, in addition to 40 existing programs totalling $200 billion.”

“Increased coordinated action by governments, central banks will be key to boosting economic confidence, stability.”

“Governments should reach the most affected people with new spending, including increased paid sick leave and targeted tax relief.”

“In advanced economies, central banks should ease financial conditions and ensure the flow of credit to the real economy.”

“Central bank swap lines to emerging market countries may be needed.”

“Foreign exchange interventions and capital flow management measures can usefully complement interest rate and other monetary policy actions.”

“Financial system supervisors should aim for balance between preserving financial stability, bank soundness and sustaining economic activity.”

“Risk disclosure and clear communications of supervisory expectations is essential for proper market functioning.”

“Banks should use their capital and liquidity buffers, renegotiate loan terms for stressed borrowers.”

“Catastrophe containment and relief trust for poorest countries now has about $400 million available for potential debt relief; aims to raise it to $1 billion.”

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