The G7 (an intergovernmental organization made up of the world’s largest developed economies: France, Germany, Italy, Japan, the United States, the United Kingdom, and Canada) is mulling support for reallocation of $100 billion new International Monetary Fund (IMF) reserves from richer nations to more vulnerable ones, seeking to aid their recovery from the global CIVID-19 pandemic.
The new reserves would address health needs, including vaccinations, and help enable greener, more robust economic recoveries.
In March this year, the IMF announced plans to give its member countries $650 billion to boost global liquidity and help emerge and low-income nations deal with mounting debt and Covid-19. This is the biggest resource injection in the Fund’s history.
France has already committed to reallocating part of its SDRs to Africa, which is earmarked to receive $33 billion of the $650 billion.
G7 leaders also will endorse a global minimum tax of at least 15%. The U.S. argues that the agreement is key to ending a decades-long competition between nations to lure corporations with lower tax rates at the expense of protecting workers, investing in infrastructure and growing the middle class.