The World Bank and International Monetary Fund (IMF) will virtually begin their annual fall meetings today. This week’s events will
The World Bank and International Monetary Fund (IMF) will virtually begin their annual fall meetings today.
This week’s events will include meetings of the IMF’s International Monetary Fund and Financial Committee (IMFC) and the Development Committee to advise the Board of Governors on poverty eradication, economic development and aid effectiveness. Today’s meetings will focus on the effect of the COVID-19 pandemic on the world economy and the potential for structural change after the pandemic.
In the short term, expect the IMF and World Bank to continue providing financial aid and relief through stimulus packages under the Rapid Credit Facility and Rapid Financing Instrument and debt relief to economies hard hit by the pandemic and global recession. Possible challenges to successful relief funding include ballooning debt in lower income countries preventing post-pandemic recovery. However, the IMF is taking steps to combat this by expanding its provision of debt service relief under the Catastrophic Containment and Relief Trust. Also expect discussions on a push for clean energy investments to help kick start a global clean energy initiative and combat climate change, as the IMF has recently declared support for green recovery plans following the end of the pandemic.
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