US Treasury Secretary Yellen initially left no specific information on the amount of the capital injection.
Under the new administration, the USA is ready to provide the International Monetary Fund (IMF) with additional financial resources. This could help poor countries that are particularly hard hit by the coronavirus pandemic, according to a letter from US Treasury Secretary Janet Yellen published on Thursday, one day before the meeting of the 20 leading industrialized and emerging countries (G20) .
Without additional support for developing countries, there is a danger of a dangerous and permanent division after the corona crisis. Because the industrialized countries are expected to have a faster and stronger recovery.
Under the Republican US President Donald Trump, who was not a supporter of international organizations, the United States had always blocked a capital injection. The US is the IMF's most influential sponsor. Now the U-turn is looming under the new Democratic President Joe Biden.
Because Yellen supports the issue of new special drawing rights, the artificial currency of the IMF, through which the fund is provided with capital. These were last increased in 2009 after the global financial crisis – by then 250 billion dollars (around 206 billion euros). In total, the fund can lend a trillion dollars. Many economists are calling for this to be increased to 1.5 or 2.0 trillion.
Yellen left open specific information on the amount of the capital injection. Italy – the country currently holds the G20 presidency – is campaigning for $ 500 billion. “This is a very good signal,” said a high-ranking German government representative on Thursday, referring to the Yellen letter. It is now the IMF's turn to make a proposal.
The G20 finance ministers and central bank chiefs consult for a good four hours on Friday afternoon via video link. A final document is not planned. Because of the corona mutations, the economic recovery of the global economy will shift somewhat backwards, said the German government representative. It is now important not to cut back the state corona aid too early and to distribute vaccines around the world. This is where the G20 group is asked.
The planned global tax reform will also be a topic at the G20 deliberations. The aim is to reach an agreement on both pillars by mid-2021 – a minimum tax for all companies and a new taxation for digital services. The US, which had no longer supported the project in the past year, is now open again to advance both pillars, said the German government representative.
