The International Monetary Fund (IMF) is said to have allocated an undisclosed amount of money to help countries around the world to resuscitate from the deadly COVID-19 pandemic, and Liberia is expected to benefit approximately US$350 million from the fund.
Hot Pepper’s findings reveal that no money has been approved for any country yet, but it is anticipated that Liberia will benefit US$350 million because of its quota of 0.05% to that international body, which the country has lived up to.
According to information, the IMF is expected to make the fund available for Liberia as a way of boosting the country’s reserve and supporting economic growth through major infrastructure investment in the post COVID-19 era.
The IMF allocation is also intended to support the fight against the deadly disease through vaccination, liquidate domestic debt as a form of economic stimulus and pay down some debt to the IMF.
When approved, the Government of Liberia (GOL), through the Ministry of Finance and Development Planning, will negotiate with the IMF on the uses of resources.
The portion of the fund earmarked to boost the country’s reserve will be given to the Central Bank of Liberia (CBL) while the non-reserve portion on lent will be given to the fiscal authority.
On July 9, 2021, the Managing Director of IMF, Kristalina Georgieva, submitted her proposal for a general allocation of Special Drawing Rights (SDRs) equivalent to US$650 billion to the Board of Governors for approval. The proposal follows the Executive Board discussion of the general allocation of SDRs on June 25, 2021 and its formal support of the proposal on July 8, 2021.
In her proposal dated July 1, 2021, Director Georgieva said, “Against an unprecedented global health and economic crisis, the membership called on the Fund to present a comprehensive proposal for a new general allocation of Special Drawing Rights (SDRs).”
She emphasized that the economic environment contrasts sharply with that prevailing immediately prior to the Eleventh Basic Period, when no general allocation was proposed, and that a general allocation of SDRs would help strengthen members’ external positions, build confidence, foster the resilience and stability of the global economy, and contribute to the global economic recovery.
The IMF Board of Governors is scheduled to vote on the proposal by August 2, 2021. Approval of the general allocation of SDRs requires support by members representing an 85 percent majority of the total voting power of SDR Department participants (currently all IMF members). Once approved, the allocation is expected to be implemented by the end of August (during the current Eleventh Basic Period).