Georgieva, IMF Managing Director: "Half of the World Requests Bailout"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), announced on the 15th (local time) that nearly half of the world has requested bailout funds from the IMF in response to the novel coronavirus disease (COVID-19).

Georgieva made this statement during an interview with CNBC's "Squawk Alley" on the same day. She said, "This crisis is not due to mismanagement or mistakes, unlike previous times," adding, "For this reason, we are providing funds very quickly." She further stated, "There is only one thing we ask (from countries requesting bailout funds): to pay wages to doctors and nurses, maintain the functioning of the healthcare system, and protect emergency workers and vulnerable groups."

In her speech at the IMF General Assembly on the same day, Georgieva said that the IMF has received emergency bailout requests from more than 100 countries so far, and that funds have already been disbursed to more than 20 countries. She reiterated that debt relief based on grants has been decided for 25 countries, including Afghanistan, which are eligible under the IMF's Catastrophe Containment and Relief Trust (CCRT).

Regarding the global economic growth rate of -3% announced the previous day, Georgieva explained to CNBC that if COVID-19 is contained, the world economy will grow by 5.8% in 2021, but even then, the total global economic output will remain below last year's level.

She added that if COVID-19 is contained but then resurges, the total global economic output could worsen further, stating, "This is the first time in IMF history that infectious disease experts have become as important as macroeconomists in economic forecasting."

Meanwhile, Georgieva said that the IMF Board is discussing plans to establish a new short-term liquidity lending facility to help member countries respond to the COVID-19 crisis. This is intended for countries with sound economic fundamentals but experiencing short-term liquidity shortages due to large-scale fiscal policies related to COVID-19. She also mentioned that discussions on Special Drawing Rights (SDR) are underway.

This content was produced with the assistance of AI translation services.