G7 considers reallocating $100 billion worth of SDRs to help poor countries

On June 11, the White House said the United States and the Group of Seven leading industrialized countries (G7) are considering reallocating $100 billion from the Special Drawing Right (SDR), an internal fund funded by Used by the International Monetary Fund (IMF), to help the most struggling countries respond to the COVID-19 crisis.

The issue will be raised as G7 leaders discuss how to accelerate the world economy’s recovery from the COVID-19 pandemic at a three-day summit in Cornwall, southwestern Australia. England, starting on 11/6.

The US and G7 partners are actively considering a global effort to replicate the effects of SDR allocations to countries most in need, the US President’s office said.

With a potential size of $100 billion, the proposed effort would further support health needs – including vaccinations, and help drive a greener, stronger economic recovery. stronger in vulnerable countries, while promoting a more balanced, sustainable and inclusive global recovery.

French President Emmanuel Macron on June 10 called on other G7 nations to find an agreement to reallocate $100 billion from the SDR to African countries.

World financial leaders in April 2021 agreed to make the allocation of $650 billion worth of SDRs as early as the end of August and to extend a debt relief program to help developing countries cope. pandemic, although only $34 billion has been allocated to Africa.

Also at this G7 Summit, G7 leaders are expected to announce their commitment to provide 1 billion doses of COVID-19 vaccine to developing countries, as part of the goal of “immunizing the world”. world” by the end of 2022.

The pledge to provide 1 billion doses of the COVID-19 vaccine was made in response to criticism that Western governments have accounted for most of the world’s COVID-19 vaccine, while developing countries have to Struggling with supply.

Earlier, on June 10, after concluding the UK-US summit before the conference, the US President also announced a commitment to buy 500 million doses of vaccine produced by Pfizer/BioNTech. Of these 500 million doses, the first 200 million will be made available this year and the rest will be delivered in the first half of 2022.

Shortly after, the British Prime Minister also announced funding of 100 million doses of COVID-19 vaccine from the country’s excess vaccine, of which 5 million doses will be provided in the coming weeks. 80% of UK-funded vaccines will be channeled through the COVAX program and the remaining 20% ​​will be through a bilateral cooperation program between the UK and other countries.

In addition, the EU has separately committed 100 million doses to African and other developing countries by the end of this year.

 

Source: Vietnam News Agency

Author: web Desk

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