IMF allocates $650 billion SDR as financial support to vulnerable countries

Source : 112 Ukraine

IMF member countries will receive $ 650 billion in Special Drawing Rights
11:30, 3 August 2021

Open source

The International Monetary Fund (IMF) has approved $650 billion in help for vulnerable countries to tackle the economic crisis from the Covid-19 pandemic, as Bloomberg reports.

IMF member countries will receive $650 billion in Special Drawing Rights (SDR).

"The SDR allocation will benefit all members, meet long-term global reserve needs, build confidence and contribute to the resilience and stability of the global economy. This will especially help our most vulnerable countries as they struggle to cope with the impact of the Covid-19 crisis," IMF Managing Director Kristalina Georgieva said.

According to the IMF statement, the SDR allocation will take effect on August 23.

This global economic recovery plan was initially shelved when the IMF's largest contributor, the U.S., blocked it during Donald Trump's administration in early 2020.

Related: Zelensky claims IMF demands "unfair"

The position of the United States has changed under President Joe Biden and Janet Yellen, the successor to  U.S. secretary of the treasury Stav Mnuchin.

As it was reported earlier, on June 9, 2020, the IMF approved a new 18-month stand-by program for Ukraine for 3.6 billion SDR (about $5 billion) with an immediate allocation of $2.1 billion of the first tranche.

The virtual mission on the first revision of the stand-by program, which had lasted since the end of 2020, ended in mid-February without recommending a second tranche.

According to forecasts of the American financial holding JPMorgan, the second tranche from the IMF in the amount of $3 billion may be provided to Ukraine by the end of 2021.

Related: IMF’s Resident Representative in Ukraine Ljungman to be replaced

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