FM Nirmala Sitharaman attends 101st meeting of IMF-World Bank's Development Committee
IMF-World Bank Development Committee Meeting: Union Finance Minister Nirmala Sitharaman attended the 101st meeting of IMF-World Bank’s Development Committee. At the meeting, IMF chief Kristalina Georgiev said that the World is headed for 'severe recession' in 2020. Get Complete Details Here.
IMF-World Bank Development Committee Meeting: Union Finance Minister Nirmala Sitharaman attended the 101st meeting of IMF-World Bank’s Development Committee. The Development Committee meeting of World Bank-International Monetary Fund was held via video-conferencing on 17th April 2020. At the meeting, IMF chief Kristalina Georgiev said that the World is headed for 'severe recession' in 2020.
According to the details shared by the ministry, the key agenda of the meeting was to evaluate and discuss the impact of COVID-19 and the ‘Great Lockdown’ announced across the globe by major economies of the world as a precautionary measure to curb its spread. At the meeting, financial experts also discussed the economic response for the COVID-19 health emergency and the debt incentives that needs to be taken in order to bring the world economy back on track.
World Economy to Suffer ‘Severe Recession’: IMF Chief
One of the key highlights of the IMF-World Bank’s Development Committee meeting was the statement given by the IMF chief Kristalina Georgiev, hinting at a severe global recession in 2020 in the wake of COVID-19 pandemic. She also noted that the on-going health crisis has posed a severe challenge for policymakers in many emerging markets and developing economies. She also added that the world economy was already experiencing a slowdown due to trade disputes, policy uncertainty and geopolitical tensions; adding to these woes the COVID-19 pandemic and the ensuing lockdown has brought the global economy to a stand-still. "The world economy was in a sluggish recovery before the coronavirus outbreak and is now bound to suffer a severe recession in 2020," Georgieva added.
IDA calls for Debt Support
At the meeting, IMF and World Bank also discussed ‘major debt initiative’ which is an International call for action in Support of IDA countries. The meeting also welcomed World Bank’s decision to grant financial support of 150 to 160 billion USD to combat COVID-19 for the next 15 months. While dealing with the crisis, the Development Committee also said that it is important to explore sustainable solution for debt challenges of the middle-income countries.
Established in 1960, IDA stands for International Development Association – a group of countries that provide concessional grants and loans to the underdeveloped countries of the world. The key motto of IDA is to reduce poverty across the globe. The Association is governed by the Board of Governors of the World Bank.