Central bank supports G20 plan to help SMEs hit by pandemic

China's central bank supported a new action plan by G20 finance ministers and central bank governors to help small and medium-sized enterprises hit by the coronavirus pandemic, a statement said on Wednesday.

Yi Gang, governor of the People's Bank of China, the central bank, shared the point of view at a video conference of G20 finance ministers and central bank governors on Tuesday, according to the statement released on the PBOC website.

He called for a well-coordinated and comprehensive action plan with his peers to work out a policy mix, in particular those measures targeting small and medium-sized enterprises that would help address the impact of COVID-19 in the short term, and bolster long-term economic recovery.

The PBOC governor also said that China supports strengthening of the global financial safety net to better help emerging markets and developing economies fight the pandemic and safeguard the stability of the global economy and financial markets.

Those at the meeting agreed to develop the G20 Action Plan in Response to COVID-19 in a timely manner to coordinate G20 policy measures. They also supported plans to explore ways of strengthening the global financial safety net, which would help emerging markets and developing economies cope with the impact of the COVID-19 pandemic.

International Monetary Fund Managing Director Kristalina Georgieva said during the meeting that she remained "very concerned" about the negative outlook for global growth in 2020, and in particular, about the strain a downturn would have on emerging markets and low-income countries.

The Fund forecasted a recovery next year, but it depends on how countries can manage to contain the virus and reduce the level of uncertainty, the IMF official said.