IMF OKs big increase in funds to alleviate pandemic impact

The governing body of the International Monetary Fund has approved a $650 billion expansion in the agency’s resources

WASHINGTON -- The governing body of the International Monetary Fund has approved a $650 billion expansion in the agency's resources to support economically vulnerable countries battling the coronavirus pandemic and the economic downturn it has caused. The 190-nation lending institution said Monday that its board of governors approved the expansion of its reserves known as Special Drawing Rights, the largest increase in the institution's history. “This is a historic decision ... and a shot in the arm for the global economy at a time of unprecedented crisis,” IMF Managing Director Kristalina Georgieva said. “It will particularly help our most vulnerable countries struggling to cope with the impact of the COVID-19 crisis.” The general allocation of SDRs will become effective on Aug. 23. The IMF said that the new reserves will be credited to IMF member countries in proportion to their existing quotas with the agency. About $275 billion of the new allocation will go to the world's poorer countries.