MOSCOW, March 26. /TASS/. Russian President Vladimir Putin has suggested that G20 leaders should contemplate establishing a special fund to help out countries affected by the coronavirus pandemic.
"We all, if we speak about G20 as a whole, need a common plan of action to stabilize the situation, support the economy and restore trust on world markets," the leader said, speaking at the summit held as a video conference.
"We now generally urgently need to ensure access to funding for countries which require resources, primarily meaning states that are affected by these crisis phenomena and the pandemic," Putin specified. According to him, "in light of this, we could think about creating a special fund under the IMF auspices financed primarily by resources of central banks, currency issuers, making up the IMF basket, and then grant the right to borrow money from this fund to any IMF member proportionally to their share in the global economy with zero interest rate for a long period of time."
The Russian leader emphasized, "the Russian government is allocating 1.2% of the country’s GDP to fight the crisis, the Central Bank is also providing approximately the same amount of help."
According to Putin, "National budgets should play a key role in increasing the global demand." "However, high volatility on markets we observe every day limits many countries’ borrowing capabilities," he stressed, adding that it worsens the situation.