New Delhi: India has asked the International Monetary Fund to use its existing resources to create a non-stigmatised short term liquidity swap facility, which could be rapidly deployed as and when needed by the countries. New Delhi has also backed the proposed G-20 action plan being formulated to counter the impact of Covid-19.

Finance minister Nirmala Sitharaman made a specific intervention on reviewing and enhancing the IMF toolkit and further expanding the swap line network at a video conference of G-20 finance ministers and central bank governors on Tuesday. She suggested that the IMF can develop innovative and ingenious methods to meet COVID-19 related financing requirements given that policy space is severely constrained in most countries in these unprecedented circumstances, an official statement said.

She also emphasised on the need to allow flexibility for countries to engage in new lines of bilateral swap arrangements. Referring to the G20 Leaders statement, regarding regulatory measures, she emphasised the importance of ensuring that the financial system continues to support and revive the economy.