IMF chief: 'Clear we have entered recession'
Washington: The coronavirus pandemic has driven the global economy into a downturn that will require massive funding to help developing nations, IMF chief Kristalina Georgieva said Friday.
"It is clear that we have entered a recession" that will be worse than in 2009 following the global financial crisis, she said in an online press briefing.
With the worldwide economic "sudden stop," Georgieva said the fund's estimate "for the overall financial needs of emerging markets is 2.5 trillion."
But she warned that estimate "is on the lower end." Governments in emerging markets, which have suffered an exodus of capital of more than 83 billion in recent weeks, can cover much of that, but "clearly the domestic resources are insufficient" and many already have high debt loads.
Over 80 countries, mostly of low incomes, have already have requested emergency aid from the International Monetary Fund, she said.
"We do know that their own reserves and domestic resources will not be sufficient," Georgieva said, adding that the fund is aiming to beef up its response "to do more, do it better, do it faster than ever before."
The IMF chief spoke to reporters following a virtual meeting with the Washington-based lender's steering committee, when she officially requested a increase in the fund's fast-deploying emergency facilities from their current level of around 50 billion.
She also welcomed the 2.2 trillion economic package approved by the US Senate, saying "it is absolutely necessary to cushion the world's largest economy against an abrupt drop the economic activities."
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India needs aviation giants, not 'Fly-by-Night' operators, says ex-minister Praful Patel
Mumbai (PTI): Former Civil Aviation Minister Praful Patel on Friday warned against "fly-by-night" operators entering India's aviation sector, arguing that only established, high-capital players can survive the industry's "tough" financial demands.
Speaking to PTI, the 68-year-old Rajya Sabha member emphasised that while India has no restrictions on new airlines, the "tough, capital-intensive" nature of the business requires long-term commitment.
"That is why it is important that big players should come into the aviation business, and not just fly-by-night people. Some new airlines have been given licenses, but I don't think they are long-term players," he noted.
His comments come as the Civil Aviation Ministry recently approved three new carriers -- Shankh Air, Al Hind Air, and FlyExpress -- to start their operations in 2026.
Patel, who served as Civil Aviation Minister from 2004-11 under the Congress-led UPA government,
said many newly licensed airlines may lack the endurance required to survive the sector's high cash-flow drain.
"We need strong players like Tatas, who came with Air India. We need similar big names also to come into the aviation sector,” the NCP leader opined.
Asked about IndiGo’s widespread flight cancellations last month, Patel said, “IndiGo is financially a very strong airline, a very big airline. There was an issue of pilots and Flight Duty Time Limitation (FDTL) rules. I wish they had handled it better.”
“Having said that, on the whole, it is still a very important player in the Indian aviation market and will remain important for many, many years to come,” the former Aviation Minister said.
The key sector needs strong players, the veteran politician emphasised.
"I think it is important that aviation needs strong players. The monopoly or duopoly is not there because somebody made it like that. In the past, you saw Jet Airways, Kingfisher and GoAir collapse financially and a series of other airlines also had these kinds of problems,” Patel said.
“That’s why, if there are strong players in aviation, it will be good for the country,” he added.
