Countries are stepping up with finances for the most vulnerable of the world, IMF Managing Director Kristalina Georgieva said Thursday (Oct. 12) in Marrakech, Morocco. Thousands of journalists, policymakers, bankers and civil society organizations are gathered there for the Annual Meetings of the IMF and World Bank.
“During these meetings, we aim to put solidarity in action by increasing our capacity to support our low income members. And I am pleased to share that there are now 40 member countries helping us get closer to our fundraising targets for the Poverty Reduction and Growth Trust, which provides zero interest rate loans to low income countries. I can tell you it warms my heart,” Georgieva told reporters at the announcement of the annual Global Policy Agenda for the Fund.
Global sovereign debt is rising in the wake of pandemic and servicing charges rising due to inflation. The IMF is urging creditors such as China to look at ways to reduce debt burdens by joining negotiations in a transparent and cooperative way through the Paris Club and the Common Framework.
“So my plea is pressure, pressure for speed and efficiency. But don’t throw the towel on the Common Framework, because if we lose it, then we are back in a much less predictable environment,” said Georgieva.
The Hamas attacks on Israel and the massive loss of life on both sides after retaliation against targets in Gaza are saddening, but also a new risk to global growth Georgieva said.
“We have seen some up and down of oil prices. We have seen some reaction on markets. And as I said, we will be closely monitoring this. Very, very clearly this is the new cloud on not the sunniest horizon for the world economy,” warned Georgieva.
But Georgieva ended on a positive note, saying that she is sure that countries will ultimately work together to take practical steps to tackle the biggest issues facing the world.
“I’m an unwavering optimist. We define our destiny. So as difficult as it might be, engage in discussions, identify areas of consensus, build on this consensus to take decisions that would improve the fate of people everywhere,” the Bulgarian concluded.
A copy of the full transcript is available at IMF.org