The IMF Has About 75% Of The $1 Trillion Reserves To Respond To The Crisis
The international monetary Fund (IMF) has about three-quarters of its $1 trillion lending capacity to help countries affected by the current global economic crisis caused by the outbreak of a new coronavirus, according to the announcement by the Managing Director of the IMF Kristalina Georgieva.
"We still have about three-quarters of our credit potential of $1 trillion available to us. We have provided to various countries a total of $250 billion," the head of the Fund said in an open Internet interview with the Reuters.
At the same time, Georgieva admitted that the crisis was more acute than the IMF experts predicted in the spring. "This is a deeper recession than we predicted in April," the IMF chief said. She recalled that in April, the Fund's experts spoke of a likely decline in world GDP this year of 3%. "Now we say that it will probably be 4.9%; this is our current assessment," Georgieva said.
"Nevertheless, we have passed the worst consequences of the shock," the head of the IMF stressed. According to her, the most complicated issue in this crisis is "uncertainty." "There is still a lot of uncertainty ahead of us; this is uncertainty about how the virus will behave; this is also the uncertainty with the speed at which the spread of the new coronavirus affects various countries, how the response to the pandemic will work," Georgieva added.
She was asked if the IMF would be enough to provide $1 trillion to help countries in need. The head of the Fund, in response, admitted that this reserve would have to be increased. "Reading our new forecasts, I would not rule out that we may find ourselves in a situation where the resources of the IMF will be put to the test. But we haven't reached that yet," Georgieva said. As she assured in this regard, the major countries-members of the IMF signal their readiness to increase this credit potential if necessary. "Our members say that all options are being considered:" come if you need something," said Georgieva.