IMF Creates Historic $650 Billion in Emergency Funds to Fight Pandemic
Jubilee USA Estimates Wealthy G7 Countries Receive $280 billion and Developing Countries Receive $230 billion from an IMF Currency Creation
On Monday, the IMF creates $650 billion of Special Drawing Rights (SDRs), the largest IMF emergency currency creation in history in order to fight the pandemic.
"Most countries are dealing with severe health and economic crises spurred by the coronavirus," noted Eric LeCompte who directs the religious development group Jubilee USA Network. Since March of 2020, Jubilee USA advocated for SDRs and organized 268 organizations to support the IMF action. "From buying food to providing healthcare, developing countries can use these emergency funds to respond to the coronavirus crisis in their own countries."
More than $230 billion of SDRs goes to developing low-income and middle-income countries. The G7 countries will receive more than $280 billion.
“About 40% of all of the emergency currency will be received by seven of the world's wealthiest counties,” explained LeCompte. "The G7 and other wealthy countries don't need these reserve funds and should donate them to developing countries for pandemic response."
Countries can use SDRs to increase government savings, fund programs or donate them to other countries. Based on current publicly available IMF data, Jubilee USA calculated that the United States receives $113 billion and all of Africa receives $33 billion in SDRs.
See Jubilee USA's calculation of the approximate amount each country will receive in emergency SDRs currency here.
Read Jubilee USA's IMF COVID response letter calling for Special Drawing Rights aid with nearly 270 signatories here.
Read the SDR letter signed by 240 global groups organized by Jubilee USA and Latindadd here.
Read Jubilee USA and the US Conference of Catholic Bishops joint letter to the White House on SDRs here.
Read About the March High-Level Treasury Secretary Yellen/Jubilee USA Network Religious Leader roundtable that Included SDRs here.
