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Peru's response to alleviate the economic impact of covid-19 1:24
(CNN Spanish) - The International Monetary Fund and the World Bank called for all official creditors to allow the suspension of debt payments with immediate effect in favor of the poorest countries that require relief to deal with the covid pandemic- 19.
The paralysis of tourism, the fall in the prices of raw materials, the loss of the value of their currencies only exacerbates the delicate situation of these nations. Last week Kristalina Georgieva, IMF Managing Director announced that emergency funds would be channeled to nations with high poverty rates to strengthen their fragile health systems in the face of contingencies.
READ: What are Latin American countries offering to alleviate the economic crisis due to the coronavirus pandemic?
The appeal points to the situation of 76 nations, which according to the organizations, represent a quarter of the world population and two thirds of the population in extreme poverty. There, they say, the outbreak could have severe economic and social consequences. The measure seeks to guarantee immediate liquidity to the governments of those nations to attend to the emergency imposed by the new coronavirus and to give time to analyze what impact the crisis will have and the financial needs of each country.
In a joint statement sent to the G20 authorities, they explained: "The World Bank and the IMF consider that it is imperative at this time to offer a global message of relief to developing countries and a strong signal to financial markets."
The 76 countries are supported by the International Development Association, IDA, a division of the World Bank focused on efforts to guarantee basic education, health services, drinking water, infrastructure, among others, through various projects to these nations.