'We Have Entered Recession Worse Than 2009': IMF Chief Amid Coronavirus Pandemic

"We have reassessed the prospects for growth for 2020 and 2021. It is now clear that we have entered a recession as bad or worse than in 2009. We do project recovery in 2021," the IMF Chief told reporters at a news conference after a meeting of governing body of the IMF, the International Monetary and Financial Committee.

The IMF Chief said the key to recovery in 2021 is only if the international community succeeds in containing the virus everywhere and prevent liquidity problems from becoming a solvency issue.

"A key concern about a long-lasting impact of the sudden stop of the world economy is the risk of a wave of bankruptcies and layoffs that not only can undermine the recovery but can erode the fabric of our societies," Georgieva said.

She added that several countries have taken measures to address the health crisis and prevent its impact on the economy, both on the monetary and on the fiscal side.

The IMF has received 81 emergency financing requests, including 50 from lower-income countries. Furthermore, the current estimate for the overall financial needs of emerging markets is 2.5 trillion dollars.

"We believe this is on the lower end. We do know that their own reserves and domestic resources will not be sufficient," she said. The IMF Chief added that the fund is aiming to beef up its response "to do more, do it better, do it faster than ever before."