IMF's Georgieva says virus crisis could ultimately test $1 trillion war chest

By David Lawder WASHINGTON (Reuters) - International Monetary Fund Managing Director Kristalina Georgieva said on Friday that the global economic crisis spurred by the coronavirus could ultimately test the Fund's $1 trillion in total resources, 'but we're not there yet.' Georgieva told a Reuters Newsmaker webcast event that it was now clear that an economic recovery would have to get underway without a medical breakthrough and the virus' presence still widespread throughout the world. IMF member countries were standing by to provide more support to the Fund if necessary, she said

Reuters June 27, 2020 00:07:03 IST
IMF's Georgieva says virus crisis could ultimately test $1 trillion war chest

IMFs Georgieva says virus crisis could ultimately test 1 trillion war chest

By David Lawder

WASHINGTON (Reuters) - International Monetary Fund Managing Director Kristalina Georgieva said on Friday that the global economic crisis spurred by the coronavirus could ultimately test the Fund's $1 trillion in total resources, "but we're not there yet."

Georgieva told a Reuters Newsmaker webcast event that it was now clear that an economic recovery would have to get underway without a medical breakthrough and the virus' presence still widespread throughout the world. IMF member countries were standing by to provide more support to the Fund if necessary, she said.

The IMF on Tuesday forecast a deeper global recession than initially anticipated, as business closures, travel restrictions and social distancing measures persist in most countries. It now anticipates a global GDP contraction of 4.9% this year and a total output loss of $12 trillion through the end of 2021.

"We still have about three quarters of our lending capacity available," Georgieva said. "I wouldn’t put it beyond us that we might be in a place where the IMF resources are being tested, but we’re not there yet."

Regarding the possibility of additional resources, she said: "Our members are telling us, 'Everything is on the table. You come to us if you need to do more of something, we are there for you.'"

The IMF has been rapidly deploying some $100 billion in emergency financing and has now provided loans and grants to 72 countries in just over seven weeks, Georgieva said.

(Reporting by David Lawder; Editing by Chizu Nomiyama and Jonathan Oatis)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Goods train runs over two persons crossing railway line in Mathura
India

Goods train runs over two persons crossing railway line in Mathura

Both were trying to free their motorcycle from the rail track when the accident occured, SP (City) Martand Prakash Singh said

Cryptocurrency prices tumble and exchange trading falters as snags crop up
News & Analysis

Cryptocurrency prices tumble and exchange trading falters as snags crop up

NEW YORK (Reuters) -The price of cryptocurrencies plunged and crypto trading was delayed on Tuesday, a day in which El Salvador ran into snags as the first country to adopt bitcoin as legal tender. Shares of blockchain-related firms also fell as crypto stocks were hit by trading platform outages. But the major focus was on El Salvador, where the government had to temporarily unplug a digital wallet to cope with demand.

Ford poaches Apple's car project chief Doug Field
News & Analysis

Ford poaches Apple's car project chief Doug Field

By Joseph White and Sanjana Shivdas (Reuters) -The head of Apple Inc's car project, Doug Field, is going to work for Ford Motor Co to lead the automaker's advanced technology and embedded systems efforts, a hiring coup for Ford Chief Executive Jim Farley.