Managing Director's IMFC Press Conference Opening Remarks
IMF News, October 15, 2020
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Bibliographic details
- Published: October 15, 2020
Opening and context
- Delivered (As prepared for delivery) October 15, 2020.
- Speaker: Kristalina Georgieva.
- Media relations contact:
- PRESS OFFICER:
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
- @IMFSpokesperson
Assessment of the crisis and overall message
- Characterized the situation as "a crisis like no other" requiring "a recovery like no other."
- Emphasized the IMFC’s steadfast support for countries and people across IMF membership.
- Praised Lesetja for his service: "You have served the IMFC and the international system extraordinarily well and with great distinction under your three-year term[1]."
Three broad policy areas (findings and recommendations)
- (1) Continue with essential measures to protect lives and livelihoods:
- Stepping up vital health measures is imperative.
- Well-targeted fiscal and monetary support to households and firms is needed.
- Clear policy recommendation: avoid premature withdrawal—"pulling the plug too soon risks serious, self-inflicted harm."
- (2) Build a more resilient and inclusive economy:
- Public investment—especially in green projects and digital infrastructure—can be a game-changer.
- Potential outcomes: create millions of new jobs, while boosting productivity and incomes.
- (3) Deal with debt:
- Global public debt is projected to reach a record high of 100 percent of GDP in 2021.
- Rationale: partly because countries rightly need to boost spending to fight the crisis and secure the recovery.
- Policy timing: addressing the issue over the medium-term will be critical; for many low-income countries, urgent action is required now.
Debt architecture and recent deliverables endorsed by the IMFC
- Welcomed two significant deliverables from the G20 and endorsed by the IMFC:
- First deliverable: agreement to create the Common Framework for handling sovereign debt treatments beyond the DSSI.
- Described as "an important advancement in the international architecture for resolving sovereign debt matters in an orderly way."
- IMF objective: improve architecture to enable fair, quick, relatively simple, relatively low-cost resolution of unsustainable debt.
- Second deliverable: extension by the G20 of the DSSI for at least another six months from the end of 2020, with the option to extend further if necessary.
- Noted outstanding issue: further private sector participation is still needed.
Vaccine cooperation and economic impact
- Strong international cooperation is needed—especially on vaccine development and distribution.
- Economic benefit highlighted: faster progress on medical solutions could speed up the recovery; it could add almost $9 trillion to global income by 2025.
- Additional effect: could help narrow the income gap between richer and poorer nations.
- Concluding policy assertion: "The value of cooperation right now cannot be overstated."
Closing notes
- Expression of thanks and readiness to take questions.
- Footnote: IMFC chair’s term expires January 17, 2021.[1]
Managing Director's IMFC Press Conference Opening Remarks — October 15, 2020