By David Lawder and Rodrigo Campos
WASHINGTON / NEW YORK, Oct 15 (Reuters) – Accelerating the recovery from the coronavirus recession may add $ 9 trillion in global revenue by 2025, the managing director of the International Monetary Fund said on Thursday, adding that this depends on a strong international cooperation, including vaccines.
At a press conference following an IMF steering committee meeting, Kristalina Georgieva also called on the United States and China to maintain strong economic stimulus that can help fuel the global recovery.
“If we could move fast everywhere, we could accelerate the recovery. And we can add nearly $ 9 trillion to global income by 2025, which in turn could help narrow the income gap between the richest countries and the richest. poor, “Georgieva said.
“We need strong international cooperation and this is very urgent today for the development and distribution of the vaccine,” he added.
Equitable access to COVID-19 therapies and vaccines will be key to avoiding an economic recovery that leaves “lasting scars,” according to the steering committee statement.
The committee said that the involvement of private creditors and official bilateral creditors in debt relief for poor countries is essential, and Georgieva added that “greater involvement of the private sector is still needed, and remains an open question.” .
The G20 on Wednesday approved a six-month extension to mid-2021 of the Debt Service Suspension Initiative (DSSI) that freezes payments on official bilateral debt, and said it would consider a further six-month extension in April. But private creditors and lenders outside the Paris Club are not fully participating.
“We are disappointed by the lack of progress in the participation of private creditors in DSSI, and we strongly encourage them to participate on comparable terms when requested by eligible countries,” said the steering committee, which also encouraged “the full participation of official bilateral creditors. “
(Reporting by David Lawder and Rodrigo Campos; Edited in Spanish by Javier López de Lérida)