IMF chief Kristalina Georgieva on Wednesday called for an all-out,"no regrets" response to the new coronavirus epidemic which poses a"serious threat" to the global economy.
The virus has shuttered factories, disrupted travel, infected nearly 95,000 people worldwide and killed more than 3,200, mainly in China, while some countries are struggling to test for and contain the spread of the illness. And while Georgieva said the global financial system is in good shape now after being fortified in the wake of the 2008 crisis,"We do need to have measures that are bringing a sense of confidence," and prevent credit from freezing up.
"Unfortunately over the last week we've seen a shift to a more adverse scenario for the global economy," due to the"sheer geographic spread of the epidemic around the world," impacting a third of the IMF's 189 member countries.Georgieva and World Bank President David Malpass spoke to reporters after a conference call of finance officials from member nations, who directed the IMF"to use all its available financing instruments to help member countries in need.
Georgieva said the fund also has a grant program used for the 2014 Ebola outbreak that relies on government donations and is underfunded with only $200 million against a need that could reach $1 billion.