Governments around the world must take "extraordinary" measures to contain the economic damage inflicted by the coronavirus pandemic, US Treasury Secretary Steven Mnuchin said on Thursday.
Poor nations are especially vulnerable, and the US official offered support for the emergency lending by the International Monetary Fund and World Bank.
"With most projections pointing toward a deep but brief shock, there is an urgent need for all members to deploy extraordinary fiscal and monetary actions to contain the fallout of the outbreak and limit long-term damage to economies, laying the foundation for a strong recovery," Mnuchin said in his statement to virtual meetings of the two lending organizations.
In addition, "we must all stand ready to accelerate and expand our policy actions if needed as circumstances evolve".
The US government has rushed out more than $2 trillion in support and lending for the hardest hit industries like airlines, and the IMF estimates the world's biggest economies have pumped $8 trillion into the economy.
But, Mnuchin said, "Low-income countries will face extraordinary needs in this crisis."
Even after the Group of 20 nations endorsed a debt payment standstill for the 76 poorest nations, he said IMF and World Bank emergency financing will be critical to helping those nations and expressed support for the moves the Washington-based crisis lenders have taken to deploy aid quickly.
The US government is "currently exploring" making a contribution to two of the emergency funds that rely on member donations to provide grants and low-cost loans to the poorest countries.
"This robust response by the IMF and World Bank Group would not be possible without the committed support of its shareholders," Mnuchin said.
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