LONDON (Reuters) – Great Britain has said it supports the injection of capital into the International Monetary Fund (IMF) by seven leading industrialized nations (G7).
This is the first time since 2009 that there has been a global financial crisis. However, after discussions with G7 finance ministers, details on the size and timing remained open on Friday.
With the new funds, the International Monetary Fund aims to help with the corona virus crisis, especially in developing and developing countries. According to the UK, which currently holds the presidency of the G7, seven industrialized nations have agreed to support a “substantial” capital injection. British Treasury Secretary Rishi Sunak spoke about a milestone. No country should retreat in epidemics. Many experts fear that the economic recovery in poorer countries could be weakened by a lack of money to fight the crisis. In addition, these states urgently need funding to purchase vaccines.
Many experts are demanding at least $ 500 billion to go into the International Monetary Fund through what are known as the International Monetary Fund’s artificial currency special drawing rights. As the most important sponsor of the International Monetary Fund, the United States has long prevented the injection of capital. But that has changed under the new administration of US President Joe Biden, for which he is open. The International Monetary Fund was last raised in 2009 – $ 250 billion at the time. In total, these funds could lend a trillion dollars.
In addition to the United States and Canada, the G7 countries include Japan, Germany, France, Great Britain and Italy.