Source · Select Committees · Treasury Committee
Recommendation 19
19
We call on the Government to throw its diplomatic weight behind the global community in...
Recommendation
We call on the Government to throw its diplomatic weight behind the global community in investing in public health systems in developing countries; ensuring that testing, treatment and a vaccine when developed is made as widely available Economic impact of coronavirus: the challenges of recovery 57 as possible to emerging economies. The Government should also consider increasing the resources available to the International Monetary Fund, should it be needed to maintain countries’ international financing in the event of renewed market turbulence or further waves of the virus. (Paragraph 153) Overall approach
Government Response
Acknowledged
HM Government
Acknowledged
On your recommendation concerning international support, I can assure you support for the most vulnerable countries suffering from the devastating health and economic impacts of the pandemic remains a key focus for the UK government. We have committed over £1 billion of UK aid so far, including £306 million to build resilience in vulnerable countries. The UK government championed the development of the Debt Service Suspension Initiative (DSSI) through the G20 and Paris Club of official creditors. This landmark initiative has to date made available around an additional $5 billion to requesting low- income countries so they can focus resources on their coronavirus response, and has been extended for a further six months. With regards to UK support for the IMF’s response to COVID-19, I strongly agree with the importance of ensuring the IMF has sufficient resources to respond to the crisis. The IMF has confirmed that it is currently adequately resourced, with a total lending capacity of about £1 trillion and resource demands will be kept under review. The government has recently passed legislation to increase the UK commitment to the IMF’s resources by £4.7 billon, in line with a 2019 agreement negotiated amongst IMF members. The UK has also contributed £150 millon to the IMF’s Catastrophe Containment and Relief Trust (CCRT) which provides debt relief to the world’s most vulnerable countries, and has committed a new additional £2.2 billion loan to the IMF’s Poverty Reduction and Growth Trust (PRGT), providing the IMF with additional concessional lending capacity to support low-income countries. I agree with the committee on the importance of ensuring rapid and equitable global access to safe and effective COVID-19 vaccines, treatments, and diagnostics, including for emerging economies. The UK has led the way globally, pledging £1 billion of UK aid to end the coronavirus pandemic as quickly as possible, including the £500 million the Prime Minister announced at the UN General Assembly which supports low and middle-income countries access to any eventual COVID-19 vaccines.