In order to fight and overcome the Coronavirus pandemic, World Bank and other supranational bodies have extended their support to vulnerable nations through providing monetary assistance and debt relief. Complete Coverage: Coronavirus
Crux of the Matter
Supranational Bodies to the Rescue The World Bank has decided to deploy up to $160 billion over 15 months to protect the poor and vulnerable, support businesses, and bolster the economic recovery of nations across the globe. It is also rolled out a $14 billion fast-track package for developing countries which includes assistance to help countries cope with the health and economic impacts of the pandemic. The International Finance Corporation (IFC) is providing $8 billion in financing to help private companies affected by the pandemic and preserve jobs whereas International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA) are providing $6 billion combined. The International Monetary Fund (IMF) also announced immediate debt relief for 25 poor countries to help them free up funds to fight the coronavirus pandemic. The fund together with the World Bank has called for rich nations to stop collecting debt payments from poor countries from May 1 through June 2021.
Help to India The World Bank approved health sector support of $1 billion for India to tackle the COVID-19 pandemic and strengthen its public health preparedness. The USA announced a $2.9 million aid package for India to prepare laboratory systems, activate case-finding and event-based surveillance, and support technical experts for response and preparedness.
Curiopedia
Definition – Monetary policy is the policy adopted by the monetary authority of a country or specific region that controls either the interest rate payable on very short-term borrowing or the money supply, often targeting inflation or the interest rate to ensure price stability and general trust in the currency or economy.
“Bretton Woods Conference” of 1944 is where both the World Bank and the International Monetary Fund were created.
The image below is of Harry Dexter White (left) and John Maynard Keynes (right), “founding fathers” of both WB and IMF. Keynes is considered the founder of modern macroeconomics.
Curated Coverage
Comments