We Have Entered Recession Which Will be Worse Than 2009 Financial Crisis: IMF Chief

Washington: IMF Chief Kristalina Georgieva on Friday, in an online briefing, said that Coronavirus Pandemic has gravely affected the global economy, which would require massive funding for the develop

Washington: IMF Chief Kristalina Georgieva on Friday, in an online briefing, said that Coronavirus Pandemic has gravely affected the global economy, which would require massive funding for the developing nations.

“It is clear that we have entered a recession,” news agency AFP quoted her as saying. She added that this will be worse than in 2009 following the global financial crisis.

“It is now clear that we have entered a recession. We project a rebound in 2021, but only if we contain the virus and prevent liquidity problems from becoming a solvency issue,” she asserted.

Georgieva said the fund’s estimate “for the overall financial needs of emerging markets is $2.5 trillion.”

But she went on to warn: “we believe this is on the lower end.”

The IMF Chief asserted that over 80 countries already have requested emergency aid from the IMF.

“We do know that their own reserves and domestic resources will not be sufficient,” Georgieva said.

The IMF chief spoke to reporters following a virtual meeting with the Washington-based lender’s steering committee, when she officially requested a increase in the fund’s fast-deploying emergency facilities from their current level of around 50 billion.

She also welcomed the 2.2 trillion economic package approved by the US Senate, saying “it is absolutely necessary to cushion the world’s largest economy against an abrupt drop the economic activities.”

(With PTI inputs)