Among G20 emerging economies, Turkey provided the most liquidity support compared to its GDP in response to the coronavirus pandemic, according to IMF’s Fiscal Monitor.
The spread of the virus, declared a pandemic by the World Health Organization on March 11, 2020, caused the worst health crisis ever while massively shaking the global economy.
Global economic activities and trade grounded to a halt and millions of people lost their jobs since the declaration of the pandemic.
While the virus hit the economy of developed countries through the healthcare systems, it also deepened the existing problems in low-income countries.
In a period when international solidarity was needed, countries closed their borders and implemented lockdown measures to stem the spread of the virus, and globalization and international supply chains suffered a breakdown.
While Turkey had to implement closing measures to contain the epidemic, it used support methods such as restructuring loans and debts, liquidity support to the market, low-interest loan facilities, and policy interest changes as part of support and incentives to reduce the economic impact of the pandemic.
According to IMF’s April report, Turkey, which is at the bottom of the list of countries that provide the largest support to its citizens compared to developed economies in time of the pandemic, takes the lead among G20 emerging markets in terms of liquidity supports.
Turkey left behind countries, including China, Brazil, India, and South Africa, with a liquidity support to GDP ratio of 9.4%, according to the report.
It was followed by Brazil with 6.2%. The figure was 1.5% in Russia, and 1.3% in China.
The ratio of loans granted under the Treasury-backed credit guarantee system to the country’s GDP reached 6.4%.