US Treasury chief asks G7 to support measures for vulnerable countries

ANKARA

US Treasury Secretary Janet Yellen asked G7 finance ministers for support Thursday to tackle differences in global economic recovery in low-income countries.

Emphasizing the importance of the recent allocation of Special Drawing Rights (SDRs) by the International Monetary Fund (IMF), Yellen urged major economies to lend their SDRs to further support vulnerable countries.

SDRs are supplementary foreign exchange reserve assets, such as gold and the US dollar, maintained by the IMF since 1969 to support asset shortages in member countries.

Yellen said the American Congress is making progress to strengthen international tax rules, which aim to enact a US minimum tax rate of at least 21% on foreign earnings on a per-country basis.

"The new international tax system would meet the needs of the 21st century global economy by providing governments with resources to invest in their workers and economies, as well as improving the standing of U.S. businesses by leveling the playing field in which they compete," she said in a statement.

G7 members agreed in June to rewrite international tax rules to impose a global minimum tax on corporate foreign earnings, which was later supported by 134 countries representing more than 90% of the world’s GDP, noted Yellen.