The International Monetary Fund pledges $ 50 billion to combat its spread

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Image source Getty Images Image caption International Monetary Fund Director Kristalina Georgieva The International Monetary Fund announced the allocation of $ 50 billion to support countries affected by the outbreak of the Coronavirus.

The organization warned that the outbreak had already hurt global economic growth and pushed it below last year’s rates.

The emergency measures came after the rapid spread of the virus outside China to more than 70 countries.

This week, governments and central banks around the world took measures to mitigate the impact of the virus outbreak.

The World Bank allocates $ 12 billion in urgent aid to combat the Corona virus

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The International Monetary Fund said it will allocate this money to poor and middle-income countries that suffer from weak health care systems to activate their ability to cope with the epidemic.

At the same time, the fund said that the spread of the Corona Virus has eliminated expectations for strong economic growth this year, and will push global output earnings for 2020 to the lowest rate since the 2008 financial crisis.

But fund manager Kristalina Georgieva warned that it is difficult to predict the magnitude of the impact of the Coruna virus outbreak, saying: “The global output in 2020 will be lower than last year’s rates, but to what extent? And for how long? It out. ”

The head of the International Monetary Fund also refused to talk about whether the escalating health crisis will push the global economy towards recession.

The last move

This latest move comes from international financial bodies, world governments and central banks to protect economies from the effects of the Corona pandemic.

Image source Getty Images Image caption The New York Stock Exchange suffered the largest losses since the global financial crisis in 2008 due to the Corona virus

On Tuesday, the US central bank cut the interest rate in response to growing concern about the economic impact of the Corona virus.

In the first emergency rate cut since the 2008 financial crisis, the US Federal Reserve cut the base rate by 50 points, from 1 percent to 1.25 percent.

Earlier in the day, Australia and Malaysia cut interest rates in response to the Coruna pandemic. Finance ministers of the Group of Seven industrialized nations pledged to use “all appropriate political tools” to deal with the economic impact of Corona.

The World Bank also pledged this week to provide 12 billion dollars in aid to developing countries suffering from the outbreak. The aid package includes low-cost debt, grants and technical assistance.

“What we are seeking is to reduce the transmission of the disease,” David Malpas, President of the World Bank Group, told the BBC.

In Britain, expectations have increased for the Bank of England very soon to follow the lead of the Federal Reserve to cut interest rates, and the new bank governor, Rishi Yunak, may use the budget announcement next week to launch financial support for the British business sector in dealing with the Corona outbreak.



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