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More than 200 groups urge G20 to back IMF issuance to help poor countries in pandemic

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Reuters

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="http://sa.kapamilya.com/absnews/abscbnnews/media/2021/reuters/02/25/imf.jpg"/><figcaption>The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, US, September 4, 2018.<em> REUTERS/Yuri Gripas/File Photo</em></figcaption></figure></div><p>WASHINGTON - Jubilee USA Network, Oxfam and 215 other civil society groups on Wednesday urged Group of 20 finance officials to back an issuance of $3 trillion of the IMF&#x27;s own currency, or Special Drawing Rights, to help countries weather the COVID-19 pandemic.</p><p>In an open letter to the International Monetary Fund and G20 finance ministers, the groups said a new allocation of SDRs would boost the reserves of all countries and avoid pushing low- and middle-income countries further into debt distress.</p><p>G20 finance ministers and central bankers will discuss a possible SDR issuance - a move akin to a central bank printing money - when they meet by video conference on Friday. Proponents note that such a move will not add cost for the IMF members.</p><p>Italy, which leads the G20 this year, is pushing for a smaller $500 billion allocation of SDRs, which can be converted to hard currency by IMF members - a move backed by France, Germany and others, but still lacking support from Washington.</p><p>The United States had opposed such a move under former President Donald Trump, but has not yet communicated a firm position on a new SDR allocation under President Joe Biden.</p><p>Treasury has declined to comment on the issue.</p><p>IMF Managing Director Kristalina Georgieva on Wednesday also called for the G20 to take strong policy action to reverse a &quot;dangerous divergence&quot; that she said threatened to leave most developing economies languishing for years.</p><p>In a blog ahead of Friday&#x27;s meeting, Georgieva said a new SDR allocation would substantially boost countries&#x27; liquidity without increasing their debt burdens. It would also expand the capacity of donor countries to provide new resources, she said.</p><p>Religious groups have also weighed in. On Tuesday, the US Conference of Catholic Bishops and Jubilee USA Network urged President Joe Biden to back a $3 trillion allocation to help poor countries bolster US trade with the developing world.</p><p>Anti-poverty group ONE on Wednesday backed an allocation of $650 billion.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/01/19/21/imf-chief-sees-high-degree-of-uncertainty-in-global-outlook">IMF chief sees &#x27;high degree of uncertainty&#x27; in global outlook</a></li></ul><div><strong>FROM THE ARCHIVES:</strong></div><figure class="op-interactive"><iframe height="315" src="https://www.youtube.com/embed/9Gh8Bm98fv0?enablejsapi=1" width="560"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

<p>In an open letter to the International Monetary Fund and G20 finance ministers, the groups said a new allocation of SDRs would boost the reserves of all countries and avoid pushing low- and middle-income countries further into debt distress.</p>

In an open letter to the International Monetary Fund and G20 finance ministers, the groups said a new allocation of SDRs would boost the reserves of all countries and avoid pushing low- and middle-income countries further into debt distress.