The G7 supports new aid for countries vulnerable to the pandemic

The%20G7%20supports%20new%20aid%20for%20countries%20vulnerable%20to%20the%20pandemic%0A
source: cfr.org

"Finance Minister Rishi Sunak and his G7 counterparts agreed today to support proposals for vulnerable countries to receive more financial aid during the pandemic," the UK Treasury announced in a statement.

This will take the form of a special rights issue ( SDR ) to "provide liquidity" to the affected countries, he explained. Be the first issue of its kind since the financial crisis of 2009 , said the text.

The operation is intended to allow affected countries "to free up resources to finance crucial needs, such as vaccines or food imports., and improve depreciation in emerging or low-income countries. "Created in 1969 by the IMF to supplement the foreign exchange reserves of its member countries, SDRs can be exchanged for currency. Its value is based on a basket of five major international currencies . They are assigned to member countries based on their quota.

This agreement "lays the groundwork for a possible agreement at the April meetings of the G20 and the IMF committee" to ensure that "no country is left behind in the economic recovery after the coronavirus, " Sunak said , quoted in the statement.

The ministers of the United Kingdom , France , Germany , Italy , Canada ,The United States and Japan also agreed that the G7 work with the IMF to improve " transparency in the use of SDRs to ensure the accountability of recipient countries."

Greater cooperation with Biden

The UK will also host COP26 in November in Glasgow. In this context, Sunak "welcomed the continued cooperation among G7 ministers to make climate a priority," including the disclosure of financial information related to sustainability or environmental impact, and green finance .

The managing director of the IMF , Kristalina Georgieva , described this meeting of the G7, a group chaired this year by the British, as "productive" and assured that the institution "will continue to support vulnerable member countries ."

Differentiating yourself from the previous presidency of Donald TrumpThe arrival of Democrat Joe Biden to the White House is marking a return to greater cooperation in international forums.

At the previous G7 Finance, in February, the ministers and central bankers of the seven most industrialized countries, plus the European Union, had agreed to put climate at the heart of their economic decisions. They also advocated for greater multilateralism in coming out of the health and economic crisis, with the idea of ​​a digital tax endorsed by Janet Yellen , the head of the US Treasury. Sunak had also defended theprompt and fair distribution of vaccines around the world , insisting that international financial institutions must have the right tools to help poor countries meet the challenges of the crisis. These meetings are a prelude to the G7 Heads of State and Government Summit to be held June 11-13 in Cornwall, south-west England.