Amid the rising coronavirus COVID-19 cases across the world, International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Monday (April 20) lauded the global community for responding strongly in the initial phase of the COVID-19 crisis, but added that much more should be done to prevent a painful and protracted recession.
"We need to think hard about where this crisis is headed and how we can be ready to help our member countries, being mindful of both risks and opportunities," Georgieva wrote in a blog.
"Just as we responded strongly in the initial phase of the crisis to avoid lasting scars for the global economy, we will be relentless in our efforts to avoid a painful, protracted recession," she added.
The IMF chief said that she is "particularly concerned" about emerging markets and developing countries as these countries have experienced the worst portfolio flow reversal on record, of about $100 billion.
"Those dependent on commodities have been further shocked by plummeting export prices. Tourism-dependent countries are experiencing a collapse of revenues, as are those relying on remittances for income support," she said.
Talking about IMF, Georgieva noted that the global financial body is ready to deploy its full lending capacity and to mobilize all layers of the financial safety net to prevent the global economy from a protracted recession.
"For our poorest members, we need much more concessional financing. With the peak of the outbreak still ahead, many economies will require significant fiscal outlays to tackle the health crisis and minimize bankruptcies and job losses, while facing mounting external financing needs," she said.
The IMF chief cautioned that many countries would face serious economic crisis in the near future as the coronavirus lockdown is adding to high debt burdens.
"We therefore need to contemplate new approaches, working closely with other international institutions, as well as the private sector, to help countries steer through this crisis and emerge more resilient," she said.
