With coronavirus shattering the world economy, the International Monetary Fund and the World Bank has called for providing relief to developing countries. They asked the bilateral creditors to suspend all debt payments from borrowing countries.
Both the financial institutions said that it was imperative to provide a global sense of relief for these countries. It was also necessary to send a strong message to financial markets, they noted.
The International Monetary Fund had already announced it would make available about 50 billion dollars through its rapid disbursing emergency financing facilities for countries with low income. The World Bank has also approved an increased 14 billion dollar package of fast track financial assistance to countries and companies in this situation.
The International Monetary Fund has already declared that the world was going through a recession. The markets have gone down after coronavirus pandemic gripped the world, the international agency said. It said that the recession was worse than the 2008 economic crisis.
It said that the ramifications of the present economic slowdown could be hard to overcome and is not expected till 2021.