Remarks by the IMF Managing Director Kristalina Georgieva at the Paris Summit Closing Press Conference

IMF News, June 23, 2023

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Lightly edited after the delivery.
Summit produced an “engaged and frank discussion.”
World described as changing rapidly, affected by “more frequent and severe shocks” and increased tensions.
Recent shocks cited: COVID, war.
Economic consequences highlighted:
- Interest rates are up.
- Debt burdens are rising.
- The cost of living is high.
- Poverty and Inequality are increasing.
Climate consequences are “upon us” and “hit hardest poor people in poor and vulnerable countries that have done the least to cause this problem.”
Call to action: “It is time to step up… time for leadership.”

Debt is a “top priority to ease the debt burden on countries, especially those who have been hit by exogenous shocks.”
Progress noted:
- G20 Common Framework delivering for Chad and for Zambia.
- Countries outside the Common Framework benefiting, including Sri Lanka and Suriname.
- The Global Sovereign Debt Roundtable now brings together traditional Paris Club creditors, non-Paris Club creditors (such as China, India, Saudi Arabia, Brazil), and the private sector together with debtor countries.
Policy priorities and advocacy:
- Accelerate debt restructuring.
- Make debt restructuring predictable and timely.
- Provide breathing space to debtor countries through debt suspension during negotiations.
- Work on “debt for climate swaps” because “debt and climate are correlated and will become even more so.”
Instruments and examples:
- World Bank leadership on debt suspension clauses in programs.
- IMF Catastrophe Containment and Relief Trust allows direct debt relief to poorer countries when hit by shocks; used mostly for COVID and intended to be used for climate shocks as well.

Assertion: “The IMF has over the last years, integrated climate considerations into everything we do, because climate is macro-critical.”
Areas of integration:
- Fiscal policy.
- Monetary policy.
- Data.
- Financial instrument(s).
Carbon pricing advocacy:
- “Without a carbon price, there is no chance that we will meet the 1.5 degrees Celsius target by 2030. We will miss it.”
- Call for an inclusive approach that includes taxes, trade, and regulatory actions, provided they “deliver the right trajectory: upwards on the carbon price.”
- Proposed carbon price floor with differentiated incidence:
- “poorer countries pay less, middle-income countries more, and rich countries, of course, have the highest price.”
- Note on progress in coverage:
- Five years ago, carbon pricing covered 17 percent of global emissions.
- Now it covers around 25 percent of global emissions.
- “There is only 75 percent more to go.”

New IMF instrument: Resilience and Sustainability Trust (RST).
- Lends long-term affordable financing with a 20-year repayment period and 10-and-a-half year grace period.
- First time in IMF history to provide this tenor of lending.
Funding mechanism:
- Funded by countries that committed part of their new SDR allocation to the IMF for this purpose.
- Example: France provided support; the IMF “look[s] forward to the U.S. contributing.”
Pledge status and deployment:
- Commitment pledged in 2021: the pledge of US$100 billion in SDR channeling.
- Around US$60 billion of this pledge is already working at the IMF in the Poverty Reduction and Growth Trust and in the Resilience and Sustainability Trust.
Operational impact and partnerships:
- Announcements made for Barbados and for Rwanda as recipients.
- Partnerships include the World Bank Group, the Inter-American Development Bank, national development banks, and analysis from the IMF’s “sister institution.”
- Seven countries have benefited; 40 countries expressing interest.
Ambition increase:
- IMF is “lifting our ambition to increase by 50 percent the size of the Resilience and Sustainability Trust” to better respond to needs.

Personal reflection on Bretton Woods origins: initial conference room had 44 countries; delegations led by men; many arrived by boat.
Global change since then:
- “Number of countries in the world has more than doubled.”
- “Number of people more than tripled.”
- “Global GDP increased more than 10 times.”
Institutional imperative: IMF must change as the world changes — to be “more inclusive, more representative, well-resourced, and serving our members with professionalism and empathy.”
Commitment: “I completely and totally commit to changing for the future with you, our members.”

Source: Remarks by the IMF Managing Director Kristalina Georgieva at the Paris Summit Closing Press Conference, June 23, 2023.