11.06.2021 – 10:00
The Group of Seven major advanced economies is considering putting its support behind a $ 100 billion reallocation of potential new International Monetary Fund reserves from the richest to the most vulnerable nations to help their recovery from pandemic.
The global effort would address health needs, including vaccinations, and help enable greener, stronger economic recoveries, the White House said in a fact sheet on Friday. The G-7 leaders’ statement will have more details, she said. Talks begin Friday at the summit in Cornwall, southwest England.
The IMF is preparing to give its member countries the largest resource injection in its history, $ 650 billion, to boost global liquidity and help developing, low-income countries deal with rising debt. and Covid-19. Managing Director Kristalina Georgieva said this week that she expects the fund’s board of governors to vote on the proposed new reserve assets, called special drawing rights, by mid-August. The organization is also working on ways to redirect those from rich nations who do not need them to the poor who do, she said.
France has pledged to reallocate some of its SDRs to Africa, which is projected to receive $ 33 billion from $ 650 billion. French President Emmanuel Macron in May urged other rich countries to reallocate their new reserves expected to increase the amount going to Africa to $ 100 billion. China supports the call.
G-7 leaders will also approve a global minimum tax of at least 15%, the White House said. The US said the deal is essential to end a decades-long race between nations to lure corporations with lower tax rates at the expense of worker protection, infrastructure investment and the rise of the middle class.
“By making large multinational corporations pay their fair share and raising resources to fund in-house renovation benefits, such as infrastructure, childcare, affordable housing, and education, a global minimum corporate tax is “A key part of our efforts to provide a foreign policy to the middle class and help support working families everywhere.” said the White House.
Translated and adapted for Konica.al by Bloomberg