By Helene Fung
International Monetary Fund (IMF) chief Kristalina Georgieva said in an online press briefing on Friday (local time) that the COVID-19 pandemic has driven the global economy into a recession, and developing nations will require massive funding assistance.
Ms Georgieva said, “It is clear that we have entered a recession,” one that is forecast to be worse than the 2009 global financial crisis.
She put the emerging markets funding needs to be US$2.5 trillion as a “lower end” estimate.
Over 80 mostly low income countries have already requested emergency aid from the IMF.
Ms Georgieva said, “We do know that their own reserves and domestic resources will not be sufficient”, and promised to step up its response.
The fund membership in January approved a plan to double one of its funding baskets – the New Arrangements to Borrow – to about US $500 billion.