G7 Finance ministers on Friday agreed to back further financial support for vulnerable countries to help them recover from the crisis brought about by the COVID-19 pandemic.

The declaration was made by UK Finance minister Rishi Sunak following a second meeting of G7 Finance Ministers held virtually.

Sunak hailed the "milestone agreement" which would ensure "crucial and concerted" action to support the world's low-income countries without leaving any nation behind in the global economic recovery.

"G7 Finance Ministers agreed to support a new and sizeable allocation of IMF Special Drawing Rights (SDR)– an asset issued by the IMF to boost members' reserves and provide liquidity for vulnerable countries, freeing up resources to pay for crucial needs such as vaccines and food imports, and improve the buffers of emerging markets and low-income countries," a statement from the organization said.

SDRs were created by the International Monetary Fund in 1969 and play a critical role in global finance and help governments protect their financial reserves against global currency fluctuations.

They are also used as the basis of loans from the IMF's key crisis-lending facilities. The IMF also uses them to calculate its loans to needy countries, and to set the interest rates on those loans.

"This significant step lays the groundwork for potential sign-off at the G20 and IMFC meetings taking place during the upcoming IMF-World Bank Spring Meetings in April. The last allocation of SDRs was in the wake of the financial crisis in 2009."

G7 leaders are also scheduled to meet at a seaside retreat in Cornwall, England, in June. Last year's summit in the United States was cancelled due to disruptions arising from the pandemic.

This year, the UK took on the Presidency of the G7 in anticipation of greater cooperation from the U.S. as President Joe Biden looked to reset his predecessor's foreign policy.

(With input from agencies)