"There will be a contraction far lower than the 2020 projections of economic growth of above three percent," Sri Mulyani noted at a press conference in Jakarta on Tuesday.
However, the IMF has estimated improvements to occur in 2021 through endeavors to maintain financial stability in ensuring that the economy does not sink deeper.
"Hence, several G20 central banks took the initiative for cooperation on swap lines," she stated.
The Financial Stability Board (FSB) also called for greater flexibility on the part of the authority and financial institutions with regard to the existing international rules to ensure smooth running of financial activities.
G20 members have currently issued huge stimulus packages, such as Germany, with an additional expenditure of US$132 billion, and providing $812 billion as additional collateral.
France introduced a stimulus package of $45 billion; the European Union, $100.86 billion; while the United States plans to issue a policy package worth $1 trillion.
Canada has issued a policy package of $63.9 billion; South Korea, $66 billion; and Australia, with a total stimulus package of $109 billion.
Meanwhile, the IMF remains committed to using its $1 trillion lending capacity to help its members through the provision of special drawing right (SDR) allocations and expanding IMF-swap line facilities.
Furthermore, the World Bank and the International Finance Corporation (IFC) approved funding of $14 billion, while the International Development Association (IBRD/IDA) will also provide $6 billion.
In addition, the World Bank, including the IFC and the Multilateral Investment Guarantee Agency (MIGA), will offer funding of $150 billion in the coming 15 months.
Moreover, G20 members work together, bilaterally or multilaterally, to restructure the debt of poor countries, so that they can focus on fighting the pandemic.
G20 members also agreed to the preparation of the G20 joint action plan containing the collective policy response of G20 member countries.
At the level of G20 leaders, a discussion will be held on new initiatives to address the pandemic globally.
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