About $650 billion in special drawing rights (SDR) is about to be allocated by the International Monetary Fund. It thus wants to help less advanced economies prevent their debt burden from increasing in the context of the effects of the coronavirus pandemic.
“The allocation of funds is an important injection for the world, and if used judiciously, it will be a unique opportunity to combat an unprecedented crisis,” said International Monetary Fund Director Kristalina Georgieva.
The International Monetary Fund is said to be concerned about trends in the global economy that can lead to divergence in individual economies. It is special drawing rights (SDR) that will help poorer countries better deal with the consequences of the pandemic.
According to Georgieva, about $275 billion will be allocated in emerging-economy countries and $21 billion in the world’s poorest countries. The money will be used mainly to combat the spread of the coronavirus, as well as to replace some of the loans they would otherwise have to take out in order to support their covid-affected economies.