IMF reports that 62% of all Covid-19 loans went to Latin American countries

Sixty-two percent of the International Monetary Fund’s lending in response to the coronavirus pandemic has gone to 21 countries in hard-hit Latin America, IMF Managing Director Kristalina Georgieva said on Tuesday.

IMF Managing Director Kristalina Georgieva

Georgieva told a panel hosted by the Americas Society/Council of the Americas, the fund had plenty of lending firepower left, and would focus on helping countries in the region take the “turn towards a greener and digital and fairer economy.”

Latin America had 8% of the world’s population, but about 20% of the Covid-19 infections and 30% of the deaths, and the end of the pandemic was not yet in sight, Georgieva said.

She said the IMF’s forecasts for 2021 called for global growth of 5.2% in 2021, with emerging markets to expand by 6%, but Latin America was expected to grow only 3.6% following a 7% decline in 2020.

The IMF chief said countries in the region could ensure better growth in the future by investing in human capital and education, addressing persistent inequalities and creating more opportunities for young people, women and entrepreneurs.

To reduce gender inequality, governments should create conditions for increased workforce participation by women, including through investment in rural roads, enacting anti-discrimination requirements for the private sector, and making childcare more affordable, she said.

Georgieva did not provide exact figures but said Argentina, Peru, Colombia and Ecuador have been the recipients of the largest loan amounts.
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Credit: Reuters