Committee supports Australia's contribution to IMF for COVID-19 fight

A FEDERAL parliamentary committee has recommended Australia commit to the International Monetary Fund’s (IMF’s) reform proposals to better combat the global economic impact of COVID-19.

Report 191, released today by the Joint Standing Committee on Treaties, supports three treaties that will give the IMF access to the funds it needs to support countries dealing with the severe economic downturn that has accompanied the pandemic.

Two of the treaties involve the direct transfer of a portion of Australia’s commitments from the third line of defence supporting IMF lending, called ‘bilateral loan agreements’, to the IMF’s second line of defence, called the ‘New Arrangements to Borrow’.

The third treaty is a commitment by Australia to the IMF’s Poverty Reduction and Growth Trust.  The Trust is already involved in supporting the COVID-19 response in lower income countries by providing the funds to purchase necessary medical equipment.

The treaties do not involve additional financial commitments by Australia.

“COVID-19 has had a massive global economic impact, and this is being felt in Australia. For Australia’s sake, we need to be doing all we can to support global economic recovery, and these reforms to the IMF will help do that,” Committee Chair Dave Sharma MP said.

In addition, the Report details the Committee’s support for a minor amendment to the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade.

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