IMF decided helping with funds even to developed countries

The pandemic adversely affected not only developing but also developed countries following the recent global economic situation. The head of the International Monetary Fund would address the IMF members about offering low- and no-interest financing to middle-income countries hit hard by the pandemic.

“I was concerned about offering low- and no-interest financing to middle-income countries hit hard by the pandemic, not just the poorest countries”. said Managing Director Kristalina Georgieva. 

The IMF’s Poverty Reduction and Growth Trust can only lend to the poorest countries restricting help to developing countries.

The United Nations and other institutions have urged the Group of 20 major economies to expand a freeze in payments on official bilateral debt and a new common framework for debt treatments to include such countries, many of which have been hit hard by the pandemic and its economic fallout.

On Wednesday, G20 finance officials upheld a $650 billion expansion of the IMF’s emergency reserves, or Special Drawing Rights, which richer IMF members will be able to loan to the IMF’s PRGT to help the poorest countries.