Treasury Notifies Congress of $650 Billion Emergency Reserves to Fight Global COVID Crisis
Treasury notified Congress of its support for $650 billion in IMF global reserves, also known as Special Drawing Rights (SDRs), to assist developing countries struggling with the coronavirus crisis. US law requires a ninety-day advance alert to Congress before the US votes for SDRs with the IMF board.
“The notification paves the way for the US to vote in favor of these funds that developing countries need," said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. Jubilee USA advocated for the creation of these funds since the advent of the pandemic. "As early as the summer, hundreds of billions of these emergency reserve funds can now be authorized for countries struggling with the pandemic."
In February, Jubilee USA Network and the US Conference of Catholic Bishops sent a letter to Secretary Yellen and President Biden expressing support for a new SDRs allocation. Jubilee USA Network also coordinated a letter to the G20 signed by more than 215 organizations worldwide in support of SDRs. The G20 and IMF announced support for the $650 billion allocation.
Treasury says low-income countries will see $21 billion from a new allocation and other developing countries receive $221 billion.
Read the letter on SDRs, aid and debt relief from the US Conference of Catholic Bishops and Jubilee USA Network here.
Read the letter organized by Jubilee USA with 200 plus signers urging the G20 to support SDRs here.
Read about the IMF's announcement of support for $650 billion in emergency reserves here.
Read the US Treasury's Fact Sheet on the benefits of a new allocation of Special Drawing Rights here.
