Coronavirus pandemic has resulted in financial constraints that have far-reaching effects in all countries across the world. According to a statement by the International Monetary Fund, more than half of the 189 member countries have asked for financial assistance in the form of a bailout.
The IMF, according to managing director Kristalina Georgieva, has been encouraged to allow for flexible financial assistance in the form of loans to stabilize the world economy.
Sources within the IMF say that they are fully prepared to provide financial assistance to as many countries as possible, using the entirety of their capacity to lend. Whereas only a few countries have received the required funding as of the present day, the IMF expects to fulfill half of the requests by Q2 of 2021.
The global COVID-19 pandemic has plagued the world economy into a state of deterioration. The debilitating effects of the lockdown have resulted in an economic depression similar to that experienced globally in the 1930s, some 90 years ago.
In keeping with previous loan standards, the IMF has stressed the importance of accountability when granting such loans. The shadow of the crisis has done little to decrease the transparency with which the IMF issues its grants.
However, unlike previous years, the IMF has allowed for more flexibility in granting emergency loans to countries in need. Whereas previously the IMF has implemented notoriously difficult conditions on bailout deals, they are now working on ways in which to make these deals more accessible.
Georgieva insisted on central banks in various countries to increase the supply of money within the economy to stimulate economic growth. She also added the importance of assisting the health sector and first responders to ensure the global health crisis does not worsen.
Whereas the global economy was expecting to grow by 3.3% by the year 2020, according to earlier forecasts, it has in turn depressed by 3% due to the effects of the COVID-19 pandemic