Tracking International Financial Institutions’ Covid-19 Response

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 July 14:

1. We estimate IFIs have approved $140.7 billion in Covid-19-related support since January 27, an increase of $23.7 billion since our last data update on June 19. The IMF has approved $82.8 billion, including emergency assistance and precautionary lines of credit, while the multilateral development banks (MDBs) combined have approved $57.4 billion. Since our June update, the IMF approved three new programs totaling $5.6 billion while MDBs approved $18.0 billion in new funding.

2. We estimate IFIs have disbursed $88.9 billion, about two-thirds of the amount approved. Reflecting the precautionary nature of a large portion of IMF support, the IMF has disbursed around 40 percent of its approved funding, or $33 billion. MDBs have disbursed $55.3 billion, or 96 percent of the total amount approved.

3. Regionally, the Americas have been the largest recipient of IFI approvals, while Asia/Oceania and Africa have received the most disbursements. IFIs have approved $58.8 billion in funding for the Americas but have only disbursed $12.9 billion, reflecting the three IMF precautionary Flexible Credit Lines with Colombia, Chile, and Peru. Asia/Oceania and Africa have received $29.4 billion and $27.8 billion in disbursements, respectively.

4. Amendments to the Chiang Mai Initiative Multilateralization (CMIM) came into effect on June 23. Resources totaling about $240 billion under the multilateral currency swap arrangement between the 10 Association of Southeast Asian Nations (ASEAN) member states, China, Japan, and South Korea have not yet been drawn; however, the recent amendments address issues around its use in relationship to IMF financing, suggesting the CMIM is in a better position to respond to members’ financing needs should they materialize. Of the five RFAs in our dataset, only the Arab Monetary Fund has approved and disbursed financial support in response to the current crisis.

This analysis is based on publicly available information; 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, and our June 25 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), 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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