IMF chief Georgieva said the move would strengthen the way out of the corona crisis. The IMF enjoys broad support for increasing reserves. The formal offer must be submitted by June.
Many pundits recently called for at least $ 500 billion to be funneled into the IMF through so-called Special Drawing Rights, the IMF's fake currency. The United States, as the most important sponsor of the IMF, has long blocked capital inflows. This changed under the new administration of US President Joe Biden and is now open to it. Most recently, IMF funds were increased in 2009, during the global financial crisis, by $ 250 billion at the time. In total, the fund can lend a trillion dollars.
Insiders said the IMF checks every five years to see if additional capital is needed. This is now evident due to the pandemic. Georgieva has long been in favor of such a step. New US Treasury Secretary Janet Yellen of the Democrats said this week that the IMF capital injection will be in the US interest because it will benefit countries in particular need. On the other hand, Republicans in Congress fear funds will flow to countries such as China, Russia and Iran.
