The International Monetary Fund (IMF) Managing Director, Kristalina Georgieva, says the global economy is now in a recession because of COVID-19 but is encouraged that world leaders have finally realized that only coordinated efforts will be able to curb the spread of the new coronavirus.

“We say that the world is now in recession and that its duration and depth depend on two things – the control of the virus and effective, coordinated response to the crisis”, said Kristalina Georgieva. “I am very encouraged by what I see now. I see a much clearer understanding (among world leaders) that if we do not deal with this situation everywhere, we will not be able to get out of it”, added she.

“We need not take… small measures now that we know it is a gigantic crisis. We have never seen a shutdown in the global economy. How to revive it is another important topic”, said Kristalina Georgieva.

The IMF has taken extraordinary measures in recent weeks to help deal with the damage to the economy by COVID-19 and efforts to curb its spread.

On March 16, the international organization announced it was “ready” to use its 1 trillion USD lending capacity to help countries in the world battling the humanitarian and economic consequences of the new coronavirus.

Kristalina Georgieva indicated that such support should be used to help member states, especially developing countries and those with emerging economies.

It said developing countries would need 2.5 trillion USD to deal with the coronavirus pandemic. The fund has received requests or requests for help from 50 emerging economies and 31 middle-income countries, said Georgieva.

In a separate communique, World Bank President David Malpass said he and Georgieva are working on an approach to debt relief for the world’s poorest countries, which are seeking a deferral. They plan to present the strategy in time for the institutions’ Spring Sessions, which will be held in a virtual format in mid-April, said David Malpass.

“Beyond the health effects of the pandemic, we expect a major global recession. The poor countries will be hit hardest, especially by those who were already heavily indebted before the crisis”, finished David Malpass.