International Financial Institutions’ Ongoing Response to the Covid-19 Crisis
August 24, 2020
The CSIS Economics Program is tracking commitments, approvals, and disbursements by major international financial institutions (IFIs) to meet the massive financing needs generated by the Covid-19 pandemic and its economic fallout. These IFIs include the International Monetary Fund (IMF), World Bank, and regional development banks. We also include select regional financing arrangements (RFAs), which, together with the IFIs, central bank bilateral swap lines, and individual countries’ foreign reserve holdings, comprise the Global Financial Safety Net (GFSN).
Based on data as of August 17:
- We estimate IFIs have approved $175.0 billion in Covid-19-related support since January 27, an increase of $23.3 billion since July 14. The IMF has approved $87.6 billion, including emergency assistance and precautionary lines of credit. The multilateral development banks (MDBs) combined have approved nearly an equivalent amount, $86.6 billion. Since our July update, the IMF approved $4.9 billion, while MDBs approved $18.3 billion in new funding. Of the MDBs, the European Investment Bank (EIB) has approved the most new funding at $6.7 billion, followed by the Asian Development Bank (AsDB) at $2.9 billion.
- We estimate IFIs have disbursed $118.9 billion, about two-thirds of the amount approved. Reflecting the precautionary nature of a large portion of IMF support, the IMF has disbursed around 43 percent of its approved funding, or $37.9 billion. MDBs have disbursed $80.3 billion, or 93 percent of the total amount approved.
- Regionally, the Americas remain the largest recipient of IFI approvals, while Africa and Asia/Oceania have received the most disbursements. IFIs have approved $67.3 billion in funding for the Americas but disbursed only $19.8 billion, with the IMF’s three precautionary Flexible Credit Lines with Colombia, Chile, and Peru accounting for the vast majority of the difference. Africa and Asia/Oceania have received $37.9 billion and $33.0 billion in disbursements, respectively.
- Since the last update, we have added the Islamic Development Bank (IsDB) to the dataset, and the Eurasian Fund for Stabilization and Development (EFSD) has approved and disbursed funding. At the beginning of the pandemic, the IsDB committed $2.3 billion to support the crisis response of its member countries and has since approved and disbursed almost the entirety of this amount. Also new since the July update, the EFSD has approved two support packages for Tajikistan and the Kyrgyz Republic, making it only the second of the five RFAs in our dataset to approve and disburse financial support in response to the current crisis, along with the Arab Monetary Fund.
This analysis is based on IFI press releases along with additional information as provided by the institutions; any corrections and/or clarifications will be included in future updates. Our dataset of IFI responses is available for download here. Our initial May 21 analysis on IFI responses is available here, our June 25 analysis on IFI responses is available here, and our July 21 analysis on IFI responses is available here.
MDBs include the African Development Bank (AfDB), Asian Development Bank (AsDB), Asian Infrastructure Investment Bank (AIIB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Inter-American Development Bank (IADB), Islamic Development Bank (IsDB), Development Bank of Latin America (CAF), New Development Bank (BRICS Bank), and the World Bank (WB). RFAs include the Arab Monetary Fund (AMF), Chiang Mai Initiative Multilateralization (CMIM), Eurasian Fund for Stabilization and Development (EFSD), European Stability Mechanism (ESM), and Latin American Reserve Fund (FLAR).
Stephanie Segal is a senior fellow with the Economics Program at the Center for Strategic and International Studies (CSIS) in Washington, D.C. Olivia Negus is a research intern with the CSIS Economics Program.
Commentary is produced by the Center for Strategic and International Studies (CSIS), a private, tax-exempt institution focusing on international public policy issues. Its research is nonpartisan and nonproprietary. CSIS does not take specific policy positions. Accordingly, all views, positions, and conclusions expressed in this publication should be understood to be solely those of the author(s).
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