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The IMF Will Need More Resources to Fight the COVID-19 Pandemic (Peterson Institute for International Economics, 5 min read) As only half of the IMF’s $1.2trn is available for lending the fund must mobilise resources through either; asking members to increase bilateral lending, expanding central bank swap lines with some IMF role in triggering their use, using repos to put country holdings of foreign government debt to use or the IMF issuing $500bn in SDR.
A Cost-effective Way to Help Emerging Markets Fight COVID-19 (FT, 3 min read) An IMF-funded scheme to guarantee fx-denominated debt service in EM (ex China) is needed to counteract looming BoP crises given unprecedented capital outflows from EM, collapsing commodity prices and the economic disruption triggered by quarantines.
Non-banks Failing Coronavirus Stress Test (OMFIF, 3 min read) Regulators must reassess the risks from leverage in the non-bank financial sector and its interconnectedness with the wider economy to determine why the Fed has had to resort to its GFC crisis toolkit despite a more robust banking system.