IMF pushes G20 for path to donate to poor nations

VENICE: The International Monetary Fund wants G20 countries to decide on a clear path over the next two days for allowing rich countries to contribute some US$100 billion (K350.87bil) worth of newly issued IMF reserves to poorer countries, the fund’s No.2 official said on Friday (local time).
IMF first deputy managing director Geoffrey Okamoto said his goal was to be able to present a viable option for channelling newly issued special drawing rights (SDR) to countries in need by the time the US$650 billion (K2.28 trillion) allocation was completed at the end of August.
“Countries expect us to have an option ready to go,” he said in an interview on the sidelines of a G20 finance ministers and central bank governors meeting.
“We’re doing all we can to secure agreement on an option that we can begin implementing once the allocation is made.”
The IMF SDR plan would distribute reserves to all 190 member countries in proportion to their ownership, with the lion’s share going to G20 countries.
SDRs were the IMF’s unit of exchange, made up of dollars, euros, yen, sterling and yuan.
To spend them, countries must arrange an exchange for underlying currencies.
In a draft G20 communiqué, the finance officials called on the
IMF “to quickly present actionable options for countries” to channel part of their allocated SDRs to aid pandemic recovery, including through the creation of a new trust fund.
The communiqué as currently written did not specifically
endorse the IMF’s SDR plan. – Reuters