At G20, Germany pledges 3 billion euros for poor countries

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At G20, Germany pledges 3 billion euros for poor countries

7:00 CAT | 20 Jul 2020

German Chancellor Angela Merkel speaks with Italy's Prime Minister Giuseppe Conte, Dutch Prime Minister Mark Rutte and European Commission President Ursula von der Leyen during a meeting on the sidelines of the first face-to-face EU summit since the coronavirus disease (COVID-19) outbreak, in Brussels, Belgium July 18, 2020. [Photo: Francisco Seco/Pool via Reuters]

Germany pledged 3 billion euros ($3.4 billion) at a meeting of G20 finance ministers to help the world’s poorest countries, the finance ministry said on Saturday.

The funds will be made available as long-term loans for the International Monetary Fund’s Poverty Reduction and Growth Trust (PRGT).

IMF Managing Director Kristalina Georgieva welcomed Germany’s “generous pledge” and urged other donors to follow suit.

In April, IMF officials said they had received pledges of a combined $11.7 billion from Australia, Japan, Canada, France and Britain to replenish the PRGT. Spain has also contributed.

The United States has been noticeably absent from the relief drive.

U.S. Treasury Secretary Steven Mnuchin told the IMF’s steering committee in April that Washington was exploring contributions to both facilities, but gave no details on the amount or timing of such a contribution.

“With the funds … low-income countries can receive greatly discounted loans and bridge liquidity bottlenecks,” the German finance ministry said.

It added that Germany will provide a total of 8.7 billion euros for international aid measures in 2020 and 2021. ($1 = 0.8752 euros)

Source: Thomson Reuters Foundation