$18.4 Trillion Were Pumped by Governments & International Central Banks to Confront "Corona"

  • International
  • 23 June 2020

A report issued by "Bank of America" ​​revealed that governments and central banks have pumped $18.4 trillion so far to save global economies and financial markets from the corona's pandemic risks and devastating repercussions, which is equivalent to about 21 percent of global GDP or the size of the global economy.

According to the data, most of the rescue packages implemented by global governments took place during the past three months in which the Corona pandemic became worse and forced the countries of the world to close their economies and implement social exclusion laws. The rescue packages implemented by governments through the Treasury ministries amounted to 10.4 trillion dollars, which is spending money from government budgets, while the amount of monetary stimulus implemented by the central banks in the financial markets and commercial banks amounted to 7.9 trillion dollars, which is the money that the central banks pumped to support banks and global financial markets to protect it from collapse.

In addition to these rescue packages, the indirect stimulus granted by the central banks to companies and businesses by reducing the interest rate on borrowing, as most central banks have reduced the interest rate during the past months, where the interest has decreased to about zero in the United States and Britain, and to zero in European Union countries and Japan.

Source (The New Arab Newspaper, Edited)

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