IMF Managing Director Kristalina Georgieva Welcomes the Executive Board’s Backing for a New US$650 Billion SDR Allocation
Washington : Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), made the following statement today regarding the Executive Board’s decision supporting the general allocation of Special Drawing Rights (SDRs):
“The IMF Executive Board yesterday concurred in my proposal for a new general SDR allocation equivalent to US$650 billion – the largest allocation in the IMF’s history – to address the long-term global needs for reserves during the worst crisis since the Great Depression.
“I will now present the new SDR allocation proposal to the IMF’s Board of Governors for their consideration and approval. If approved, we expect the SDR allocation to be completed by the end of August.”
“ This is a shot in the arm for the world. The SDR allocation will boost the liquidity and reserves of all our member countries, build confidence, and foster the resilience and stability of the global economy. In 2009, an SDR allocation contributed significantly to recovery from the global financial crisis and I am confident that this new allocation will have a similar benefit now.”
“The SDR allocation will help every IMF member country – particularly vulnerable countries – and strengthen their response to the COVID19 crisis.”
“We will maintain active engagement with our membership in the months ahead to identify viable options for voluntary channeling of SDRs from wealthier members to support our poorer and more vulnerable countries to help their pandemic recovery and achieve resilient and sustainable growth, which will also help boost global economic recovery.”