Major economies support $650 billion boost in IMF resources

WASHINGTON (AP) — Finance officials of the world’s major economies on Wednesday agreed on a proposal to boost the resources of the International Monetary Fund by $650 billion as a way to provide more support to vulnerable countries struggling to deal with a global pandemic.

The Group of 20 major industrial countries issued a joint statement saying the increase in IMF resources would provide countries with greater resources to fight the pandemic.

The proposal, which will need approval from the IMF’s board and then contributions from member countries, received a boost earlier this year when it got the backing of the Biden administration. The resources are known as IMF Special Drawing Rights and create an asset that countries can use to bolster their own reserves.

The G-20 finance group also approved a final six-month moratorium on debt payments by 73 of the world's poorest countries which would extend the moratorium begun last year until the end of this year.

International aid groups expressed unhappiness that the G-20 was terming this extension as the final one that would be offered.

“We’ve seen progress on debt relief and aid, but we still need to solve multiple challenges so countries can get through this crisis,” said Eric LeCompte, executive director of Jubilee USA Network. “It is unlikely that the breathing space indebted countries get with this extension will be enough.”

The G-20 group also lent support to a Biden administration drive to establish a global minimum tax rate for corporations, saying it hoped to achieve a consensus in the group by the middle of this year.

U.S. Treasury Secretary Janet Yellen had urged countries to adopt a minimum corporate tax in a speech on Monday, saying it was needed to stop a “30-year race to the bottom” in...