The IMF is calling for an agreement to increase its resource quota and strengthen the global economy
International Monetary Fund Managing Director Kristalina Georgieva arrives at a meeting of G20 finance ministers and central bank governors in Gandhinagar, India, July 18, 2023. REUTERS/Amit Dave/FILE PHOTO Acquire License Rights
NEW DELHI, Sept 10 (Reuters) – It is crucial to increase quota resources for the International Monetary Fund (IMF) before the end of the year, its chief Kristalina Georgieva said on Sunday, urging members of the G20 bloc to set their targets to achieve a promise of $100 billion per year in climate funds.
In a statement at its summit in New Delhi this weekend, the group pledged to address debt vulnerabilities in low- and middle-income countries “in an effective, comprehensive and systematic manner” but offered no new action plan. “G20 members must lead by example and deliver on their promises of $100 billion a year for climate finance, supported by strengthening multilateral development banks,” Georgieva said in a statement at the end of the two-day summit.
“Countries also need to mobilize domestic resources to finance and manage the green transition through tax reforms, effective and efficient public spending, strong financial institutions and strong local debt markets.”
She called on the group to strengthen the global financial safety net.
“To make the global economy stronger and more resilient in a more shock-prone world, it is important to reach an agreement to increase the IMF’s quota resources before the end of the year,” she said.
Such a pact would secure the necessary resources for the Fund’s interest-free support for the poorest countries through the Poverty Reduction and Growth Trust, she added.
The G20 summit also pledged to strengthen and reform multilateral development banks while adopting a proposal to more strictly regulate cryptocurrencies worldwide.
“There is still a lot of work ahead of us, including in the area of digital money and crypto assets,” Georgieva said.
Reporting by Swati Bhat; Editing by Sudipto Ganguly and Clarence Fernandez
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