Rome: Finance ministers and central bank governors of the G20 nations decided during their second official meeting under the Italian G20 Presidency to provide further support to vulnerable countries that are facing economic consequences of the coronavirus pandemic.
“We will further step up our support to vulnerable countries as they address the challenges associated with the COVID-19 pandemic. We call on the IMF [the International Monetary Fund] to make a comprehensive proposal for a new Special Drawing Rights (SDR) general allocation of USD 650 billion to meet the longterm global need to supplement reserve assets,” the participants said in a joint communique following the meeting on Wednesday.
A new allocation by the IMF is believed to enhance global liquidity and help the global economic recovery, the communique added.
The group also decided to further extend the Debt Service Suspension Initiative (DSSI) to facilitate higher pandemic-related spending by six months through December.
The DSSI, initially approved last April, was subsequently extended several times and was set to expire in June. (Sputnik)