For Immediate Release: July 13, 2021
Contact: Hillary John, hjohn@skdknick.com

US and World Leaders Support Increased Allocation for Vulnerable Countries

Washington, DC ― After the International Monetary Fund (IMF) Executive Board approved a plan to issue $650 billion of Special Drawing Rights (SDRs), momentum is growing in the United States and abroad to provide additional economic relief to help lower- and middle-income countries stop the spread of COVID-19.

At no cost to Americans, Special Drawing Rights (SDRs) are reserve assets the IMF can use to help countries facing economic downturns. Once approved by the IMF Board of Governors in August, the $650 billion allocation of SDRs will be the largest issuance in history.

However, as the threat from the COVID-19 Delta variant rises, US and world leaders are warning the IMF that especially vulnerable countries will need additional assistance to bolster the infrastructure needed to scale up vaccine distribution programs.

• “We are very concerned about the Delta variant and other variants that could emerge and threaten recovery. We are a connected global economy. What happens in any part of the world affects all other countries. We, therefore, recognize the importance of working together to speed the process of vaccination and have the goal of wanting to vaccinate 70 percent of the world's population next year. We recognize that while a lot has been done to finance the purchase of vaccines that, with respect to logistics both for vaccine distribution, sending vaccines to areas where there is increasing infection to so called hotspots around the world, therapeutics, PPE and other things, that we need to do something more and to be more effective.” — US Treasury Secretary Janet Yellen

• “Given the pandemic’s effects in developing countries, the US Government must lead the world in accessing emergency reserve funds, or what’s known as the creation of the IMF’s Special Drawing Rights (SDRs). These generated funds were crucial in supporting economies to survive the 2008 financial crisis . . . We urge your Administration to lead a response with the G20, IMF and Congress, that would generate a $3 trillion SDR issuance that would immediately deliver $1 trillion to all developing countries.” — US Conference of Catholic Bishops Chairman of the Committee on International Justice and Peace Bishop David J. Malloy and Jubilee USA Network Executive Director Eric LeCompte in a letter to President Biden.

• “Global Citizen applauds the IMF’s latest step towards a new $650B #SDRs allocation. More SDRs on loan to poor countries struggling to fund #COVID19 response will make this ‘shot in the arm’ even more effective!” — Global Citizen tweet

• “Since the start of the pandemic, leading economists and hundreds of development and faith-based organizations have encouraged the IMF to issue SDRs worth $3 trillion as the most effective and immediate way for poorer nations to fight COVID-19 and for the rest of the world to attain global health security.” — Just Foreign Policy Senior Fellow Sarah Burns

• “Last week's vote for an issuance of $650bn Special Drawing Rights is a critical step forward. Organizations representing tens of millions of Americans have been clear we need much more. This is a win for the global economy and a win for the United States.” — Action Corps Director Isaac Evans-Frantz. Action Corps is leading a coalition of organizations advocating for an issuance of over 2 trillion in Special Drawing Rights.

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