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$50bn To Address Coronavirus Outbreak To Be Provided By IMF

$50bn To Address Coronavirus Outbreak To Be Provided By IMF
Countries that have been hit by the coronavirus outbreak will be given financial aid of $50bn the International Monetary Fund (IMF). At the same time, the global institution also warned that the global economic growth for the year will be lower than what was achieved last year because of the hit by the outbreak of the coronavirus.
The IMF decided to announce the emergency financial aid after the fast spreading deadly virus – officially known as Covid 19, spread to more than 70 countries all across the world in addition to China.
Actions to ease the impact of the virus have been taken by governments and central banks around the world this week.
Those countries that have been hit by the virus outbreak and are poor or have reached middle income levels and have have weak health systems to respond to the epidemic would be the primary recipients of the its financial aid, the IMF said.
Expectations of stronger economic growth this year have been erased by the spread of the coronavirus, the IMF also said. It has now forecast that the growth rate for the global economy for the current year of 2020 will be the slowest since it was hit by the global financial crisis of 2008.
However, just how big the economic impact of the virus outbreak will be is hard to forecast just now, warned IMF managing director Kristalina Georgieva. "Global growth in 2020 will dip below last year's levels, but how far it will fall and how long the impact will be is still difficult to predict," she said
She however did not say anything to questions about whether there could be e global recession because of the escalating health crisis globally because of the coronavirus spread.
The decision of the IMF to provide financial aid to hard hit countries is the latest effort of global financial bodies, world governments and central banks to shield economies from the economic fall out of the coronavirus outbreak.
For example, interest rate was cut the central bank of the United States on Tuesday as a measure to address growing concerns on the possible economic impact of the coronavirus outbreak in the country. Its benchmark rate was lowered by 50 basis points to a range of 1 per cent to 1.25 per cent by the US Federal Reserve in its first emergency rate cut since the 2008 financial crisis.
In response to the coronavirus outbreak, rates of interest were also cut on the same day by both Australia and Malaysia. The finance ministers of the G7 nations pledged to use "all appropriate policy tools" to address the economic fall out of the coronavirus outbreak.  
Earlier this week, a help of $12bn package for developing countries was announced by the World Bank for such countries to tackle the coronavirus outbreak. low-cost loans, grants and technical assistance were included in the emergency package.
"What we're trying to do is limit the transmission of the disease," World Bank Group President David Malpass told the BBC.

Christopher J. Mitchell

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