IMF chief eyes deadline extension to Brexit trade deal amid coronavirus uncertainty

IMF head Kristalina Georgieva advised policymakers to seek ways to reduce the element of uncertainty. PHOTO: REUTERS

LONDON (AFP) - International Monetary Fund head Kristalina Georgieva on Thursday (April 16) suggested that Britain and the European Union extend their deadline on striking a post-Brexit trade deal in the face of coronavirus uncertainty.

"My advice would be to seek ways in which this element of uncertainty is reduced in the interests of everybody, the UK, the EU, and the whole world," Ms Georgieva told the BBC when asked if she would advise on an extension.

"I really hope that all policymakers everywhere would be thinking about" reducing uncertainty, she added.

"It is tough as it is, let's not make it any tougher."

The IMF this week warned that the coronavirus pandemic is pushing the global economy into the deepest recession in a century, cutting world output by 3 per cent this year, and cautioned that the crisis could get even worse.

British and European Union officials meanwhile have agreed to schedule three new rounds of post-Brexit trade talks, starting next week by video conference, after the coronavirus epidemic disrupted negotiations.

However a joint statement following a call between EU negotiator Michel Barnier and British counterpart David Frost made no mention of postponing the end of Britain's transition out of the bloc beyond Dec 31.

British Prime Minister Boris Johnson insists there is no question of the United Kingdom remaining under EU rules after that date, while some observers have warned that the Covid-19 pandemic has made a quick deal impossible.

The UK government was, on Thursday, expected to extend a nationwide lockdown for another three weeks, as the country's coronavirus death toll approached 13,000.

The British economy could shrink by 13 per cent this year in the case of a three-month lockdown, according to the government.

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