Germany expects deal on new IMF reserves to help poorest countries in pandemic
Reuters
Published Apr 06, 2021 05:39AM ET
BERLIN (Reuters) - Germany expects world financial leaders this week to back a $650 billion new allocation of the International Monetary Fund's Special Drawing Rights (SDR) to help countries cope with the pandemic and its economic fallout, officials said on Tuesday.
"That is a reasonable figure," a senior German finance ministry official said ahead of the virtual spring meetings of the International Monetary Fund and World Bank.
With the new U.S. administration backing the move, there is now broad agreement among IMF members to bolster the Fund's emergency reserves and a deal this week will pave the way for the fresh money being available from August, the official said.
The new allocation will benefit countries struggling most from the pandemic as roughly 42% of the new funds will go to the world's poorest countries, the official added.
Vaccination rates and economic development are diverging widely across the globe so the move to bolster IMF's emergency reserves is meant to reduce the recovery gap between rich and poor countries.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.