G20 coronavirus plan focuses on poorer countries' debt problems

Fears for poorest countries

IMF Managing Director Kristalina Georgieva on Tuesday welcomed steps already taken by G20 countries, but said she remained "very concerned about the negative outlook for global growth in 2020 and in particular about the strain a downturn would have on emerging markets and low-income countries".

"Our forecast of a recovery next year hinges on how we manage to contain the virus and reduce the level of uncertainty," she told the meeting.

Georgieva last week said the global economy was already in recession and called for "very massive" spending to avoid a cascade of bankruptcies and emerging market debt defaults. She said emerging economies would need at least $2.5 trillion.

Georgieva said the IMF had adjusted its rules to allow its poorest members to invest in crisis response rather than repay the IMF's Catastrophe Containment and Relief Trust, and urged other countries to expand that facility to $1 billion.

"I count on the G20 to help build consensus on a way forward for our poorest members," she said.

The G20 leaders pledged last week to fund all necessary measures to stop the spread of the virus, which by Tuesday had infected around 800,000 people and killed around 39,000.

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The also expressed concern about the risks to fragile countries, notably in Africa, and acknowledged a need to bolster financial safety nets.

On Monday, G20 trade ministers agreed to keep their markets open and ensure the continued flow of vital medical supplies, equipment and other essential goods.

The G20 comprises Australia, Canada, Saudi Arabia, the United States, India, Russia, South Africa, Turkey, Argentina, Brazil, Mexico, France, Germany, Italy, Britain, the European Union, China, Indonesia, Japan and South Korea.