(Bloomberg) – The International Monetary Fund is set to discuss a proposal on Friday to create a record $ 650 billion in new reserves for its members, bringing approval a little closer to the plan to increase resources for nations that they struggle with the economic and health costs of the pandemic.
The executive board – made up of 24 people from IMF member countries and Managing Director Kristalina Georgieva – typically meets several times a week and will review the specifics of the proposal. The idea is not expected to be controversial within the board, which in March gave broad support to its wording, according to two people familiar with its discussions, who asked not to be identified because of the confidentiality of the matter.
The board will likely consider the proposal based on a so-called time frame, which means that if there are no objections or requests from members for additional meetings or formal discussions over a period of days, it will be considered approved and will move forward to final approval of the board of governors, usually composed of the finance ministers or the presidents of the central banks of the 190 member countries of the IMF.
Logistically, that step is likely to take weeks. Georgieva has said that she expects the process for reservations, known as special drawing rights, to be completed by mid-August.
With this, the IMF is preparing to give its member countries the largest injection of resources in its history to boost global liquidity and help emerging and low-income nations deal with growing debt and the consequences of the covid pandemic. -19.
Nota Original:IMF Board to Discuss $650 Billion Reserves-Creation Plan Friday
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