IMF Managing Director: "Brexit Transition Period Should Be Extended"

[Asia Economy Reporter Kiho Sung] The Managing Director of the International Monetary Fund (IMF) has urged the United Kingdom and the European Union (EU) to effectively extend the Brexit transition period. She pointed out that uncertainty should not be increased amid the difficulties caused by the novel coronavirus disease (COVID-19).

Kristalina Georgieva, the Managing Director, said in an interview with British media on the 16th (local time) when asked about the possibility of a 'no-deal' between the UK and the EU, "Given the unprecedented uncertainty caused by the (COVID-19) pandemic, it is not wise to add more (uncertainty)."

She emphasized, "I hope all policymakers will consider (reducing uncertainty), as things are already difficult now, and they should not be made harder."

Earlier, the UK officially left the EU, known as Brexit, at the end of January.

Both sides plan to conduct negotiations on future relations, including trade agreements, during the transition period set until the end of this year.

If an agreement is not reached by the end of the year, both sides will be subject to the World Trade Organization (WTO) framework, which could cause shocks similar to a 'no-deal' Brexit.

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