Virus-induced downturn ‘way worse’ than financial crisis: IMF

washington/geneva — The coronavirus pandemic has brought the global economy to a standstill and plunged the world into a recession that will be “way worse” than the global financial crisis a decade ago, the head of the International Monetary Fund said, calling it “humanity’s darkest hour”.

The IMF’s managing director, Kristalina Georgieva, speaking at a rare joint news conference with the leader of the World Health Organization, called on advanced

economies to step up their efforts to help emerging markets and developing countries survive the economic and health impact of

the pandemic. “This is a crisis like no other,” she told some 400 reporters on a video conference call. “We have witnessed the world economy coming to a standstill. We are now in recession. It is way worse than the global financial crisis” of 2008-09.

Georgieva said the IMF was working with the World Bank and WHO to advance their call for China and other official bilateral creditors to suspend debt collections from the poorest countries for at least a year until the pandemic subsides.

She said China had engaged “constructively” on the issue, and the IMF would work on a specific proposal in coming weeks with the Paris Club of creditor nations, the Group of 20 major economies and the World Bank for review at the annual Spring Meetings, which will be held online in about two weeks.

The IMF has begun disbursing funds to requesting countries, including Rwanda, with requests from two additional African nations to be reviewed, she said.

“This is, in my lifetime, humanity’s darkest hour — a big threat to the whole world — and it requires from us to stand tall, be united, and protect the most vulnerable of our fellow citizens,” Georgieva said. —