Connect with us

Hi, what are you looking for?

Economy

New IMF reserves could fund vaccinations for low-, middle-income countries — report

WASHINGTON — Moves to bolster the IMF’s emergency reserves could provide the $44 billion needed to vaccinate 70% of the population in lower- and middle-income countries by the end of 2022, at no added cost to rich countries, a new Rockefeller Foundation report finds.

Finance officials from the Group of 20 major economies are expected to back a $650 billion new allocation of the International Monetary Fund’s (IMF) Special Drawing Rights (SDR) this week to help countries cope with the pandemic and its economic fallout.

Vaccination rates and economic development are diverging widely across the globe, according to the IMF and other experts.

The Rockefeller report, to be released Tuesday, said rich countries could reallocate their new SDRs to quickly close the funding gap and get more people vaccinated around the world, preventing virus mutations that could stall a global recovery.

The World Bank estimates that Africa alone would need about $12 billion for COVID-19 vaccines to attain sufficient levels of inoculations to interrupt virus transmission, according to a new paper by the bank and the IMF.

The paper, published Monday, argued for an extension of the Group of 20’s debt service moratorium through yearend, citing the continued high liquidity needs of developing countries and their deteriorating debt sustainability outlooks.

But it said additional resources would be needed, noting that the amount of money Africa needed was about the same as the total amount of official debt service payments already deferred by 45 of the poorest countries participating in the G20’s Debt Service Suspension Initiative (DSSI).

The Rockefeller report noted that high- and upper middle-income countries accounted for 86% of COVID-19 shots administered worldwide as of the end of March. It said advanced economies should aim to reallocate at least $100 billion in SDRs to fund the vaccination drive and other measures needed to help poor and middle-income countries.

Donor countries could pledge new SDRs to the IMF’s Poverty Reduction and Growth Trust, which provides loans to 63 low-income countries, but could also provide them to 16 approved institutions, including the World Bank, which could make them more widely available via low- or no-interest loans.

Another option would be for those institutions to use re-allocated SDRs to back the issuance of bonds earmarked specifically for pandemic response and the vaccination drive, the report said.  Reuters

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Latest

Top News

Intensifying focus on worker safety across medical, chemical, automotive, and oil & gas sectors is a major reason for the burgeoning nitrile gloves industry,...

Economy

The government expects to finish 29 flagship infrastructure projects worth P238.48 billion before President Rodrigo R. Duterte’s term ends in 2022. It has added...

Economy

The Philippine central bank raised its balance of payment (BoP) projection for this year on expectations of an improved economic landscape here and overseas....

Economy

The Philippine central bank raised P100 billion from its auction of short-term securities on Friday even as rates rose on hints by the US...

Economy

The country’s outstanding foreign debt fell by 1.5% or $1.4 billion to $97 billion at the end of March from end-December, after the National...

Economy

The Department of Health (DoH) reported 6,833 coronavirus infections on Friday, bringing the total to 1.35 million. The death toll rose by 110 to...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!