IMF approves $258bn financing to 93 countries

The International Monetary Fund (IMF) says it has approved $258 billion in new financing to 93 countries, since the start of the pandemic.

Kristalina Georgieva, managing director of the bank disclosed this in her message, on the IMF’s annual report titled ‘crisis upon crisis’.

“We are now extending that support to those most heavily affected by the latest set of shocks,” she said.

Georgieva noted that last year, stakeholders approved a historic $650 billion allocation of the IMF’s Special Drawing Rights to strengthen countries’ reserves, helping to provide much-needed liquidity support to countries worldwide.

Building on this achievement, she said the Fund began the process of reforming its financing support, starting with efforts to boost the size of its concessional lending for low-income countries.

“This year, our members also agreed to launch the Resilience and Sustainability Trust — our first facility providing long-term affordable financing — to help our more vulnerable members build resilience against climate shocks and future pandemics,” said disclosed.

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She was worried that over the past year, the ongoing pandemic has continued to exact an enormous health and socioeconomic toll, affecting lives and livelihoods everywhere. In the midst of the nascent recovery, the world is facing a second, unprecedented shock: Russia’s invasion of Ukraine. Millions of refugees have fled the fighting. Millions more remain internally displaced.

According to her, the economic consequences continue to reverberate. Soaring food and energy prices and broader inflation are hitting the most vulnerable the hardest—just as high debt and tightening global financial conditions make it even more difficult for governments to support them. In addition, there is a sharply increased risk of the world fragmenting into geopolitical and economic blocs that could reverse decades of gains in living standards.

“The IMF is working to help our members address these challenges and keep moving forward on an increasingly difficult road to recovery”, she said.

On the other hand, she had advised emerging markets and developing economies with large foreign currency borrowing and external financing needs to prepare for possible turbulence in financial markets as the monetary policy stance in advanced economies tightens.