IMF Managing Director Kristalina Georgieva welcomed Germany’s “ generous pledge ”and urged other donors to follow suit.
The funds will be made available as long term loans for the International Monetary Fund’s Poverty Reduction and Growth Trust (PRGT).
Germany pledge 3 billion euros ($ 3.4 billion) at a meeting of G20 finance ministers to help the world’s poorest countries, the finance ministry said on Saturday.
In April, IMF officials said they had received pledge of a combined $ 11.7 billion from Australia, Japan, Canada, France and Britain to replenish the PRGT. Spain has also contributed.
But US has been noticeably absent from the relief drive.
US Treasury Secretary Steven Mnuchin told the IMF’S steering committee in April that Washington was exploring contributions to both facilities, but gave no details on the amount or timing of such a contribution.
“ with the funds… low income countries can receive greatly discounted loans and bridge liquidity bottlenecks,” the Germany finance ministry said. It added that Germany will provide a total of u8.7 billion euros for International aid measure in 2020 and 2021.($1=0.8752 euros).