IMF approves big aid boost

The executive board of the International Monetary Fund approved a $650 billion expansion in resources to support economically vulnerable nations as they battle the coronavirus pandemic.

IMF Managing Director Kristalina Georgieva said Friday that the new support, the largest such expansion in the history of the 190nation lending institution, would be a “shot in the arm for the world.”

To fund the spending, the IMF will expand its Special Drawing Rights, a currency reserve that can be tapped by IMF member countries.

To put the size of the funding expansion in context, the IMF approved a $250 billion boost in SDR reserves following the 2008 financial crisis.

It is a reversal of the stance taken by the Trump administration, and it began in February when the Biden administration got behind the effort.

Republican members of Congress have objected to the funding, saying that the expanded IMF resources would benefit U.S. adversaries such as China, Russia and Iran. However, the assistance has been strongly supported by international relief agencies.

Eric LeCompte, executive director of the religiousaffiliated development group Jubilee USA Network, said that the IMF action would allow developing countries to immediately receive more than $200 billion in support.

“Wealthy countries who receive emergency reserves they don’t need should transfer those resources to developing countries struggling through the pandemic,” LeCompte said.