IMF Managing Director emphasizes the need for mutual support and cooperation in a rapidly changing, tense world at the Paris Summit Closing Press Conference.

IMF MD

Photo: Managing Director of the IMF Kristalina Georgieva meets with King Felipe VI of Spain at the International Monetary Fund in Washington. December 02. 2022. Washington, DC, United States. IMF Photo/Joshua Roberts. (File Photo)

Paris, June 24, 2023 — During the Paris Summit Closing Press Conference, IMF Managing Director Kristalina Georgieva stressed the urgent need for mutual support in the ever-changing world. Unfortunately, she said, we face more frequent and severe shocks, which leads to heightened tensions.

“While our economy has shown resilience in the face of challenges such as COVID and war, it has come at a cost. Interest rates have risen, debt burdens are growing, and living costs are high. Unfortunately, poverty and inequality are also on the rise.”

“The climate crisis is upon us and disproportionately affects poor and vulnerable countries that have contributed the least to the problem.”

“We must act decisively to address these issues. To do so, we need strong leadership.”

“I support the call to reduce the debt burden on countries that experience exogenous shocks,” the IMF MD said.

“The Global Sovereign Debt Roundtable is a positive step that combines traditional Paris Club creditors and non-Paris Club creditors such as China, India, Saudi Arabia, Brazil, the private sector, and debtor countries. She remarked that we must address the correlation between debt and climate and work on debt-for-climate swaps.”

“The IMF has integrated climate considerations into all our work, recognizing that climate is macro-critical. We advocate for carbon pricing to meet the 1.5 degrees Celsius target by 2030. We propose a fair carbon price floor where poorer countries pay less, middle-income countries pay more, and rich countries pay the highest price. There is progress towards this goal, with carbon pricing now covering around 25% of global emissions. We still have a long way to go, but where there is a will, there is a way,” the IMF Chief stated.

Ms. Georgieva said that Financing is a crucial topic for the IMF. “We recently introduced a new instrument called the Resilience and Sustainability Trust, offering long-term, affordable Financing with a 20-year repayment period and a 10-and-a-half-year grace period, a first in IMF history.”

“We fulfilled our 2021 pledge of US$100 billion in SDR channeling, with approximately US$60 billion already in use in the Poverty Reduction and Growth Trust and the Resilience and Sustainability Trust. This funding has made a significant difference.”

“As I reflect on my time at the IMF, I recall visiting the hotel in Bretton Woods where it all began, with only 44 countries and all-male delegations, most arriving by boat. Today, the world has more than doubled in the number of countries and more than tripled in population, with global GDP increasing more than tenfold. We must adapt to these changes and commit to a more inclusive, representative, and well-resourced future. As a dedicated and empathetic assistant, I am committed to serving our members with the utmost professionalism and look forward to continuing our work together,” Kristalina Georgieva concluded.

The summit in Paris on June 22-23 brought together heads of state, financial institutions, and members of civil society to address inequality, climate change, and biodiversity. The aim was to reform the international monetary system and create a fairer, more sustainable future. Roundtable discussions focused on debt solutions, green infrastructure, and climate finance. The summit established principles for future financial reforms and created a more balanced financial partnership between the North and South. The main goal was to reduce the climate, economic, and technological gaps that divide the world and build prosperity and security for every country.

The summit took place at three Paris venues: the Palais Brongniart, UNESCO, and the OECD.

Source: IMF

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