Question : Which historic decision has been taken by the IMF to help the weaker countries battling the corona virus pandemic and economic slowdown ?
a. Historic SDR allocation of 650 billion dollar
b. Historic SDR allocation of 450 billion dollar
c. Historic SDR allocation of 350 billion dollar
d. Historic SDR allocation of 550 billion dollar
Ans. a.
Related facts —
- IMF on August 02 has been taken a historic decision to help the countries battling the corona virus pandemic and economic slowdown.
- Decision —
- The Board of Governors of the IMF has approved a general allocation of Special Drawing Rights (SDRs) equivalent to US$650 billion (about SDR 456 billion) on August 2, 2021, to boost global liquidity.
- The general allocation of SDRs will become effective on August 23, 2021.
- The newly created SDRs will be credited to IMF member countries in proportion to their existing quotas in the Fund.
- About US$275 billion (about SDR 193 billion) of the new allocation will go to emerging markets and developing countries, including low-income countries.
- One key option is for members that have strong external positions to voluntarily channel part of their SDRs to scale up lending for low-income countries through the IMF’s Poverty Reduction and Growth Trust (PRGT).
- Concessional support through the PRGT is currently interest free.
- The IMF is also exploring other options to help poorer and more vulnerable countries in their recovery efforts.