The International Monetary Fund (IMF) has proposed a $50bn trust fund for Nigeria, low income and middle countries because of balance of payment irregularities.
In an IMF publication ‘A New Trust to Help Countries Build Resilience and Sustainability.’, the international monetary fund stated that overlooking the long term challenge of economic sustainability and inclusive growth instigated by the Covid-19 pandemic should not be the case.
The report said, “A proposed $50bn trust fund could help low-income and vulnerable middle-income countries build resilience to balance of payments shocks and ensure a sustainable recovery.
The international financial institution warned that the pandemic has shown the importance of ameliorating long term challenges. “The pandemic has taught us that not addressing these long-term challenges in a timely manner can have significant economic consequences, with the potential for future balance of payments problems.”
The IMF also recognized climate change as a long-term impasse, which could pressurize economic stability and growth in countries across the globe. The institution pointed out natural disaster and wreckage in the the labor market, trade and other industries.
IMF explained that the challenges are not specific to low income countries but also middle income countries. However, the International Monetary Fund would require approval from the IMF Executive Board and support from member state.
IMF said, “These are global public policy challenges, and it is the shared responsibility of individual countries and the international community to take timely actions.”
“With broad support from the membership and international partners, we hope that the Trust can be approved by the IMF Executive Board before the upcoming Spring Meetings and for it to become fully operational before the year’s end.”