The G20 leaders said during Thursday's summit that they are injecting more than $5 trillion into the global economy “as part of targeted fiscal policy, economic measures and to guarantee schemes to counteract the social, economic and financial impacts of the pandemic.”
During a videoconference of the world's 20 largest economies, the leaders said they are committed to restoring confidence, maintaining financial stability and reviving growth, vowing to form a united front against the coronavirus pandemic. They added that facing the current health, social and economic repercussions is a "top priority".
The leaders pointed out that they were committed to reducing the turmoil facing global supply chains, and they asked finance ministers and central bank governors to coordinate with each other periodically to develop a plan of action to respond to the impact of the coronavirus, in addition to working closely with international organizations to provide appropriate and urgent financial assistance.
Moreover, the International Monetary Fund (IMF) asked G20 leaders to expand its emergency financing capabilities and strengthen its response to the rapid spread of the epidemic that is expected to cause a global recession in 2020.
The World Bank and the IMF called on all official bilateral creditors to suspend debt payments from International Development Association (IDA) countries that request forbearance. This will create immediate liquidity needed to tackle challenges posed by the outbreak and allow time for an assessment of the crisis impact and financing needs for each country.
On her part, IMF Managing Director Kristalina Georgieva said during the extraordinary G20 Leaders’ Summit, that the depth of the economic downturn and the speed of recovery depend on containing the epidemic through the "strength and coordination of our monetary and fiscal policies."
Georgieva added that it was extremely important to support emerging markets and developing economies that were particularly hard hit by the crisis, experiencing sudden economic interruptions, flight of capital, and steep falls in commodity prices.
“We will get through this crisis together. Together we will lay the ground for a faster and stronger recovery,” she stressed.
The IMF Managing Director called on boosting global liquidity through substantial SDR (Special Drawing Right) allocation by expanding the use of swap type facilities at the Fund.
She concluded by asking official bilateral creditors to ease the debt burden of the poorest members during the times of global downturn.
As for the Saudi King, Salman said that the major economies should take decisive measures to combat the outbreak on various levels. Confronting the disease, he said, "requires us to take firm measures at various levels."
He stressed the full support to coordinate efforts with the World Health Organization (WHO), saying: "We must all bear the responsibility to enhance cooperation in financing research and development in the pursuit of a vaccine for the coronavirus, and to ensure the availability of necessary medical supplies and equipment."
"We must strengthen the framework of global readiness to combat infectious diseases that may spread in the future," Salman concluded.
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