Devex Quotes Eric LeCompte on G7 Support for Special Drawing Rights

Devex quotes Eric LeCompte on the G7's support to issue special drawing rights for developing nations. Read an excerpt below, and click here for the full story.

G-7 leaders support 'sizeable' Special Drawing Rights allocation

By Adva Saldinger

While the G-7 finance ministers described the new issuance as “sizeable,” they stopped short of stating an amount. They did say the new allocation will be “subject to the IMF’s analysis of global reserve needs,” which will be presented before any formal agreement. That assessment is highly anticipated.

"We are waiting on the IMF to formally assess the needs of poor countries to decide on the size of a SDR issuance,” said Eric LeCompte, executive director at Jubilee USA Network, in a statement. “There is no doubt that developing countries have needs north of a trillion dollars.”

Another outcome of the meeting was an agreement between the G-7 and IMF to enhance transparency and accountability around SDR usage and to determine how countries could voluntarily use their SDRs to support low-income countries. The G-7 said IMF should determine some options for how that could be done, but it should not delay an agreement to a new general allocation, the statement said.



Read the full article here.