- Five countries, Japan, the United Kingdom, France, Canada, and Australia, have pledged to support the IMF with $11.7 billion
- Germany has also announced plans to provide an emergency grant facility to give direct funds for the poorest countries
- The $11.7 billion is almost 70% of the $17 billion increase needed to combat the coronavirus
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Five wealthy countries have assured the International Monetary Fund (IMF) of a total of $11.7 billion to combat the coronavirus.
The fund comes in the form of a loan and grant facility for countries that need economic aid.
The decision is in line with the IMF’s plan to take a second look at the resources needed to fight the epidemic.
READ ALSO: COVID-19: IMF gives 25 poor countries 6 more months to repay debts
According to Kristalina Georgieva, IMF’s Managing Director, the pledges came from Japan, the United Kingdom, France, Canada, and Australia.
A Business Insider report shows that the pledge represents almost 70% of the $17 billion increase she asked for on Wednesday, April 15, 2020.
According to Georgieva, the pledges were made on Thursday, April 16, 2020, in the course of a meeting of the International Monetary and Financial Committee (IMFC).
The IMFC is the 24-member steering committee of the global crisis lender.
Georgieva further noted that Germany also pledged an emergency grant facility to provide direct funds for the poorest countries.
This, she noted, will boost the Catastrophe Containment and Relief Trust’s resources to $600 million.
Meanwhile, the International Monetary Fund (IMF) has predicted a likely shrink in the global economy by 3%.
According to the IMF, the collapse of economic activities would mark the steepest downturn since the Great Depression of the 1930s.
In its 2020 World Economic Outlook, the IMF predicted a partial rebound in 2021 with the world economy growing at 5.8%.
Per a Reuters report, it, however, stated that there are extreme uncertainties tied to the forecasts.
READ ALSO: IMF sets $500 million dollars at 0% interest rate for Ghana to combat COVID-19
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