'It's normal to be stuck on whether to break the bank first to get money or not.'
The International Monetary Fund (IMF) has been urged to release another $650 billion from its emergency reserves to help its member countries struggling with economic pressures.
The matter was voiced by a total of 140 groups of non-governmental organizations (NGOs) regarding the IMF's promise to approve Special Drawing Rights (SDR) reserves to help countries affected by the Russia-Ukraine war.
In general, the effects of war have resulted in many countries experiencing issues of food supply, health, energy in addition to macroeconomic problems such as inflation.
In fact, the World Bank Group report yesterday confirmed again that almost 600 million people are experiencing extreme poverty despite the risk of recession in the next year increasing.
Based on that factor, the NGO groups urged the IMF to approve the SDR for the 2nd time in a year ahead of the global financial meeting between the agency and the World Bank later.
In the meantime, law-making bodies and business groups also voiced similar things behind the factor that the approval could be taken advantage of by Russia because it is still a member state.
To counter that factor, a group of supporters of the approval say Russia will have a hard time finding any country that will convert their SDRs into money for it.
In response to the approval, former IMF official Mark Plant said there was difficulty in obtaining 85% approval due to the Group 20's failure to fulfill their commitment to recycle $100 billion.
Looking at the record, last August 2021 the IMF launched the SDR for the first time by disbursing $650 billion for the recovery of the Covid-19 pandemic.
However, this year, the problem of high inflation and the growing debt crisis in poor countries put pressure on the IMF.
