Kristalina Georgieva, Managing Director of IMF, attends a session in Munich, Germany. File photo/AP
The coronavirus pandemic has driven the global economy into a downturn that will require massive funding to help developing nations, IMF chief Kristalina Georgieva said Friday.
"It is clear that we have entered a recession" that will be worse than in 2009 following the global financial crisis, she said in an online press briefing.
With the worldwide economic "sudden stop," Georgieva said the fund's estimate "for the overall financial needs of emerging markets is $2.5 trillion."
But she warned that estimate "is on the lower end."
Governments in emerging markets, which have suffered an exodus of capital of more than $83 billion in recent weeks, can cover much of that, but "clearly the domestic resources are insufficient" and many already have high debt loads.
Over 80 countries, mostly of low incomes, have already have requested emergency aid from the International Monetary Fund, she said.
"We do know that their own reserves and domestic resources will not be sufficient," Georgieva said, adding that the fund is aiming to beef up its response "to do more, do it better, do it faster than ever before."
She also welcomed the $2.2 trillion economic package approved by the US Senate, saying "it is absolutely necessary to cushion the world's largest economy against an abrupt drop the economic activities."
The US package also is important because it accelerated Washington's approximately $16 billion contribution to the IMF's lending capacity. The fund membership in January approved a plan to double one of its funding baskets -- the New Arrangements to Borrow -- to about $500 billion.
"The US decision to speed up approval of its substantial new contributions to the IMF is a powerful message to the international community and helps solidify the IMF's (overall) $1 trillion lending capacity," Georgieva said in a statement after the House of Representatives approved the massive rescue package.
President Donald Trump signed the measure into law Friday evening.
It provides direct cash payments to Americans, a huge expansion of unemployment benefits, and grants and loans to businesses to help them weather the economic shutdown.
The IMF chief spoke to reporters following a virtual meeting with the Washington-based lender's steering committee, when she also requested an increase in the fund's fast-deploying emergency facilities from their current level of around $50 billion.
For the first time since the Great Recession a decade ago, the US Federal Reserve is poised to cut interest rates, shoring up America’s defenses as the global economy weakens.
David Malpass, US President Donald Trump’s nominee to lead the World Bank, won unanimous approval from the institution’s executive board, continuing the 73-year tradition of an American running the world’s largest development lender. The bank said that Malpass, the US Treasury’s undersecretary for international affairs, will start his new role on Tuesday as the World Bank and International Monetary Fund
The global economy is showing signs of bouncing back from the severe downturn caused by the global coronavirus pandemic, but a full recovery is “unlikely” without a vaccine, IMF chief Kristalina Georgieva said on Wednesday.
The Centre also confirmed that it is following the situation around the clock and would continue brief the public on the latest developments, calling on the public, road users and motorists to exercise precautions when driving during rain, and to avoid nearing surface runoffs and pools of rainwater. It also appealed to members of the society to follow the bulletins and reports issued by the NCM and not to circulate rumors.
The multi-millionaire ex-Chancellor and his wife Akshata Murty were last year granted planning permission to build a swimming pool, gym and an adjoining tennis court on farmland at the manor house.
Asad Kaleem, an executive producer at ARY, said that the action means that 4,000 employees at the TV are now without work. He pleaded with the government to reverse its decision and bring the hugely popular ARY back on air.