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Coronavirus: G20 leaders to inject $5trn into global economy

Coronavirus

Riyadh, Washington, March 26, 2020
The leaders of the world’s 20 largest economies (G20) have promised to inject more than 5 trillion dollars into the global economy, as part of their coordinated response to the coronavirus pandemic.
This is as the World Bank President, David Malpass, said in Washington, United States of America, that the board of the financial institution is finalising a package of coronavirus relief valued at up to 160 billion dollars over the next 15 months.
A statement released after the conclusion of the virtual meeting of the G20, led by Saudi Arabia, read: “We are injecting more than 5 trillion dollars into the global economy, as part of targeted fiscal policy, economic measures, and guarantee schemes to counteract the social, economic and financial impacts of the pandemic.”
Finance ministers and central bank governors of the G20 countries will coordinate and work closely with international organisations to develop and deliver “appropriate international financial assistance,” the statement stressed.
The leaders also plan to expand manufacturing capacity to meet the increasing needs for medical supplies amid the novel coronavirus outbreak.
Malpass, in a statement issued after a G20 leaders call on Thursday, said
“The goals are to shorten the time to recovery, create conditions for growth, support small and medium enterprises, and help protect the poor and vulnerable.”
He added that the health crisis hit close to home, as former World Bank U.S. Executive Director Carole Brookins has died of COVID-19, the disease caused by the coronavirus.
The World Bank earlier this month approved 14 billion dollars in loans and grants to bolster coronavirus medical responses, an amount that is included in the 160 billion dollars.
Malpass said the bank now has new COVID-19-related projects underway in 56 countries and is encouraging other multilateral development banks to co-finance follow-up tranches.
World Bank Group entities are restructuring existing projects in 24 countries to direct funds to the health emergency.
“I’m particularly concerned about poor, densely populated countries such as India, where weak health systems need massively scalable investments in human capital, supplies and infrastructure,” Malpass said.
“We are working hard to provide support through our public and private sector tools.
The International Finance Corp, the World Bank’s private sector arm, is working on new investments in 300 companies and is extending trade finance and working capital lines of credit, he added.
Malpass and International Monetary Fund Managing Director Kristalina Georgieva on Wednesday urged bilateral creditors to extend debt relief to help the poorest countries deal with the pandemic

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