15The UK should ask for an extension of the post-Brexit transition period until the uncertainty is eased, as the global economy is currently plagued by a coronavirus pandemic, the head of the International Monetary Fund, Kristalina Georgieva.

“It’s hard. Let’s not make it harder”, said Kristalina Georgieva. “My advice would be to look for ways to reduce this element of insecurity in the interest of everyone, the UK, the EU, the whole world”, added she.

The transition period for Brexit is due to end on December 31 and the barriers to exports and imports will increase if no new trade agreement is reached by then. At the same time, the coronavirus crisis increases the challenges of the negotiations.

Earlier this week, the IMF warned that the world economy is heading for its steepest decline since the Great Depression of the 1930s this year. The IMF managing director praised the emergency measures taken by the UK Treasury and the Central Bank of the UK and Northern Ireland, which Georgieva said were taken “early” and are well coordinated.

“This very strong package of measures helps the United Kingdom, but given the UK’s significant role in the world economy, it actually helps everyone”, said Kristalina Georgieva.

The government has increased spending and reduced taxes as part of a package of measures that, according to the UK’s budget services, will cost 100 billion GBP (125 billion USD). Authorities have also offered guarantees for corporate loans worth 330 billion GBP.

The central bank’s management lowered the basic institutional interest rate to 0.1% and increased the bond repurchase program by a record 200 billion GBP.