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IMF body urges more contributions to tackle virus-caused recession

All News 15:18 April 17, 2020

SEOUL, April 17 (Yonhap) -- An advisory body of the International Monetary Fund (IMF) has called on members to make additional contributions to help the world's poorest and vulnerable nations combat the fallout from the coronavirus outbreak, Seoul's finance ministry said Friday.

The International Monetary and Financial Committee (IMFC) made the call the previous day after holding a videoconference with representatives from its 24 member countries attending, according to the ministry.

The IMFC has expressed support for the IMF's anti-crisis package and called for additional measures to provide aid to susceptible members as the coronavirus pandemic is tipped to plunge the global economy into a recession this year.

This undated file photo shows the headquarters of the International Monetary Fund in Washington, D.C. (Yonhap)

IMF's crisis management package includes simplified approval procedures for emergency lending, doubling of the cap on rapid financing instruments and rapid credit facility, the provision of liquidity to countries with solid economic fundamentals and debt relief for the world's poorest and vulnerable nations.

In particular, the advisory panel urged IMF member countries to make more contributions as part of efforts to keep a lid on disasters, reduce poverty and promote economic growth in poorer nations.

The IMFC, meanwhile, said it hopes the world economy may recover in 2021 after contracting this year due to the coronavirus pandemic that has shut down factories and cities.

"While the global outlook is subject to exceptionally high uncertainty, we expect a recovery next year as we continue to employ all available policy tools to defeat the pandemic, protect jobs and restore growth," according to the communiqué released after the meeting of the IMFC on Thursday.

In its latest report, the IMF said Tuesday that the global economy is expected to shrink 3 percent this year, compared with its January prediction of a 3.3 percent expansion.

Global economic activity has been battered by the coronavirus outbreak that has led to massive lockdowns in the United States and major European countries. So far, the disease has infected nearly 2.16 million people worldwide, with the global death toll around 146,000.


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