• About
  • Advertise
  • Privacy Policy
  • Contact
Friday, February 3, 2023
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Yellen defends IMF help for poor countries amid opposition from Republicans

March 25, 2021
thevaultzbythevaultz
in USA, America
0
Biden’s proposed spending plans won’t fuel inflation- Yellen

US Treasury Secretary, Janet Yellen. Image: AP

US Treasury Secretary, Janet Yellen has faced firm Republican opposition during her mandatory Senate Banking Committee hearing for supporting an expansion in funding for the International Monetary Fund’s efforts to help poor nations cope with the global pandemic.

During the hearing scheduled a day after she met with the House Financial Services Committee, Republican Senator, John Kennedy argued that the extra cash influx would direct money from US taxpayers to American adversaries like China, Russia and Venezuela.

“You say you want to help poor countries; you and I both know that only about 10% of that is going to go to poor countries.”

Senator John Kennedy

He added that much of the money will end up in the hands of countries the US has deemed “bad actors”. Kennedy did not specify the source of his estimate.

RelatedPosts

Republicans Oust Ilhan Omar From Major Committee

Biden To End COVID-19 Emergencies On May 11

Trump Kicks Off 2024 Presidential Run

kennedyjohn 111419gn2 lead
Sen. John Kennedy. Image: TheHill

The Senator also averred that American taxpayers will need to pay $180 billion for that increased allocation. However, Yellen replied that it won’t cost taxpayers that much, though the US may issue Treasuries to fund its support of the IMF measure.

The senator interrupted, shouting, “I rest my case!” to which Yellen replied: “I’m sorry!”. She argued that US involvement will be “essentially a wash” because of interest earned on converting the funds for other nations.

Kennedy responded saying, “No disrespect, but I think you’re wrong. I think we’re going to have to borrow all $180 billion of this.”

“When China comes to redeem its SDRs and says ‘We want dollars,’ where do you think we’re going to get the money?”

Kennedy asked Yellen

“We’re going to borrow it.”

Senator John Kennedy .

The exchange ended with Kennedy and Yellen agreeing to speak by phone.

  • Yellen backs new allocation of IMF’s currency to aid recovery
Republican Senators’ concerns about China

During the hearing, Republican Senator, Pat Toomey of Pennsylvania also pressed Yellen on the issue. He raised concerns that China would fail to be transparent about its use of SDR’s.

Yellen told Toomey, “Many countries have indicated a willingness to recycle the SDRs they receive either in the form of loans or grants to low-income countries.” This, she indicated, will magnify the impact of the funding.

She didn’t, however, provide additional details on which countries have made such commitments.

Another concern raised by Republican Senator, French Hill, is the potential for credit from the fund to be used to repay “predatory lending” from China under its Belt and Road Initiative.

Yellen assured that “We do want to make sure that SDR allocations are used to address real needs. We’ll work with them and with China to ensure that they don’t go to repay their loans from the Belt and Road initiative.”

SDR allocations by level of development in millions of SDRs
Previous SDR allocations by level of development (in millions of SDRs)

Meanwhile, Republican Senator, Marco Rubio of Florida has released a statement urging President Biden’s administration to reject the IMF funding.

“There is absolutely no reason to use American taxpayer dollars to do the bidding of [China President] Xi Jinping; …committing genocide against the Uyghurs and persecuting Hong Kong’s pro-democracy movement.”

Republican Senator, Marco Rubio
Expanding IMF’s reserve assets

The IMF announced on 24th March that it’s aiming for member countries to back $650 billion in additional reserve funds. The fund, known as Special Drawing Rights, or SDRs, is to help low-income nations cope with Covid-19.

As a result, Yellen has reversed Trump administration’s stance opposing the allocation of SDR’s.

However, Republican’s oppose the IMF’s move to expand its reserve assets for the first time since 2009. Such a decision requires consent from the US as the IMF’s largest shareholder, but not specifically from Congress. This limits the Republicans ability to counter its implementation.

Read Also: Kenya: AfDB and Equity Group Holdings sign $100 million loan for trans-Africa expansion

Tags: IMFJanet YellenRepublicansSpecial Drawing RightsUSA

Related Posts

Republicans Oust Ilhan Omar From Major Committee
USA

Republicans Oust Ilhan Omar From Major Committee

February 3, 2023
Biden To End COVID-19 Emergencies On May 11
USA

Biden To End COVID-19 Emergencies On May 11

January 31, 2023
Trump Kicks Off 2024 Presidential Run
USA

Trump Kicks Off 2024 Presidential Run

January 30, 2023
Biden Selects Zients As Next White House Chief Of Staff
USA

Biden Selects Zients As Next White House Chief Of Staff

January 27, 2023
Trump’s Facebook Account To Be Restored After 2-Year Ban
USA

Trump’s Facebook Account To Be Restored After 2-Year Ban

January 26, 2023
U.S To Send 31 Abrams Tanks To Ukraine
USA

U.S To Send 31 Abrams Tanks To Ukraine

January 26, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post

Banks expect 5% clean-up levy to start applying in the next couple of years, say 2023 – Mr. John Awuah

Next Post

Ghana to produce a total of 57.3 million barrels of oil in 2021

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.
Kenya Scales Down Security Of Ex-President Kenyatta
Africa

Kenya Scales Down Security Of Ex-President Kenyatta

by Comfort AmpomaaFebruary 3, 2023
Ghana’s Political Culture is Generally Conflictual- Dr Amakye-Boateng
General News

NPP Flagbearership Race: Party Finds Itself In A Quandary- Political Scientist

by Angeller AshongFebruary 3, 2023
NIA Pathetic and Disbelieving- Ablakwa
General News

NIA Pathetic and Disbelieving- Ablakwa

by Samuel Yeboah OtibuFebruary 3, 2023
Closing Bell: A Black Thursday for the Ghana Stock Market, GCB Falls 10%
Securities/Markets

Closing Bell: A Black Thursday for the Ghana Stock Market, GCB Falls 10%

by Stephen M.CFebruary 3, 2023
Apple Inc., Amazon Inc. and Alphabet Inc. Witness An Economic Slowdown, Revenues Slump
Innovation

Apple Inc., Amazon Inc. and Alphabet Inc. Witness An Economic Slowdown, Revenues Slump

by Priscilla Dziedzorm FiakpornuFebruary 3, 2023
DDEP: An Ample Time To Consult, Engage Stakeholders Would Have Been The Solution- Prof. Lord Mensah
Finance

DDEP: An Ample Time To Consult, Engage Stakeholders Would Have Been The Solution- Prof. Lord Mensah

by Gifty BansahFebruary 3, 2023
Kenya Scales Down Security Of Ex-President Kenyatta
Ghana’s Political Culture is Generally Conflictual- Dr Amakye-Boateng
NIA Pathetic and Disbelieving- Ablakwa
Closing Bell: A Black Thursday for the Ghana Stock Market, GCB Falls 10%
Apple Inc., Amazon Inc. and Alphabet Inc. Witness An Economic Slowdown, Revenues Slump
DDEP: An Ample Time To Consult, Engage Stakeholders Would Have Been The Solution- Prof. Lord Mensah
Snow
FIND OUT MORE

The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In