The head of the International Monetary Fund said on Monday the global economic outlook remained highly uncertain; given the coronavirus pandemic. Besides, a growing divergence between rich and poor countries required the IMF to find more resources.
The IMF head stressed the global lender needed more resources to help heavily indebted countries; citing a highly uncertain global economic outlook.
IMF Managing Director Kristalina Georgieva told reporters a new allocation of the IMF’s own currency, Special Drawing Rights (SDRs); would give countries more fiscal space to address the health crisis and accelerate moves to a digital and green economy.
But, the United States, the IMF’s largest shareholder, has blocked such a move; arguing it would provide more resources to richer countries since the allocation would be proportionate to their shareholding.
Reuters cited the Swedish Finance Minister Magdalena Andersson, the new chair of the IMF’s steering committee; speaking at an online news conference with Georgieva, said it was clear the need for liquidity remained great, and she would consult with member countries on options for expanding liquidity.
Andersson, the first European to head the International Monetary and Financial Committee in more than 12 years and the first women, started her three-year term in the role on Monday.