The executive board of the International Monetary Fund (IMF) today approved a $650 billion allocation for COVID-19 vaccines.
IMF managing director Kristalina Georgieva issued a statement today confirming that the executive board concurred in her proposal for a new general Special Drawing Rights (SDR) allocation of $650 billion — the largest allocation in the IMF’s history — to address long-term needs for what she called “the worst crisis since the Great Depression.”
According to the statement, Georgieva will present the SDR allocation proposal to the IMF’s board of governors for their consideration and approval, which, if obtained, would lead to the expectation that the allocation is completed by the end of August.
“This is a shot in the arm for the world,” Georgieva said. “The SDR allocation will boost the liquidity and reserves of all our member countries, build confidence, and foster the resilience and stability of the global economy. In 2009, an SDR allocation contributed significantly to recovery from the global financial crisis and I am confident that this new allocation will have a similar benefit now.”
The SDR allocation will apply to ever IMF member country, with a specific emphasis on vulnerable countries to strengthen their response to the COVID-19 pandemic, Georgieva said.
“We will maintain active engagement with our membership in the months ahead to identify viable options for voluntary channeling of SDRs from wealthier members to support our poorer and more vulnerable countries to help their pandemic recovery and achieve resilient and sustainable growth, which will also help boost global economic recovery,” Georgieva added.