IMF Sets Up Catastrophe Relief Fund as Recession Begins Worldwide

International Monetary Fund chief Kristalina Georgieva has acknowledged that the global economy has entered recession on the back of Coronavirus and as the world continues to struggle against the pandemic the financial organization has set up Catastrophe Containment and Relief Trust (CCRT) to support the crunched countries.

“It is clear that we have entered a recession that will be worse than in 2009 following the global financial crisis,” said Georgieva who recently addressed an online conference.

The chief further informed investors that as many as 80 countries – mostly with poor income – have filed for emergency aid to combat the virus that has brought the world to halt.

In order to assist the poor countries and help them sustain during the pandemic and after, IMF has set up the CCRT which will initially give debt relief and then provide financial assistance to its poorest and most vulnerable members. Under the fund, a fundraising plan has been set up to collect $1 billion for the struggling economies.

While the UK has contributed £150m ($183m) to the fund, Japan, China, and other strong countries have also pledged to make a contribution to the cause.

“We do know that their own reserves and domestic resources will not be sufficient [and] the fund is aiming to beef up its response to do more, do it better, do it faster than ever before,” she added.