Transcript of a Press Conference of the Chair of the Intergovernmental Group of Twenty Four (G24) on International Monetary Affairs and Development

IMF News, April 16, 2024

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Published: April 16, 2024

Opening remarks (Chair: Ralph Recto)

Date: April 16, 2024.
High‑level framing:
- Global economy faces "two hot wars, a trade war, mounting debt burdens, and an existential climate crisis."
- Any slowdown in the global economy will hit developing countries hardest; inaction is "not an option."
- The goal of a "sustainable and inclusive future by 2030" remains possible with the right priorities and international cooperation.
Emphasis on domestic policy priorities:
- Prioritize inclusive growth strategies that facilitate structural transformation, sound fiscal management, and macroeconomic stability.
- Strengthen domestic resource mobilization to improve resilience and attract private and external investment.
Call to international financial institutions:
- Scale up support to vulnerable countries through "more innovative and responsive enhancing solutions" to sustain productivity, enhance long‑term growth prospects, and increase resilience to shocks.
- Urgent emphasis on the ambitious replenishment, expedited disbursement, and efficient delivery of the International Development Association, or IDA21.
- Need to reinvigorate the global financial safety net and the development financing landscape through intensified multilateral cooperation.

Key concerns and risks raised during the press conference

High global interest rates:
- High interest rates compound debt burdens for many G‑24 members and pose downside risks to growth and employment.
Trade and geopolitical tensions:
- Trade frictions between major economies and ongoing wars have contributed to higher inflation and supply‑chain changes, with knock‑on effects for developing countries.
Debt vulnerabilities:
- Multiple references to high public debt and protracted debt‑restructuring processes for some members.
Climate risks and financing:
- Climate change is an acute threat for many members; developing countries need concessional and long‑term financing to respond.

Policy recommendations and multilateral priorities (as stated in the transcript)

For developing countries:
- Pursue inclusive growth, structural transformation, sound fiscal management, and macroeconomic stability.
- Strengthen domestic resource mobilization, including collection of consumption taxes where the sale occurs.
For international financial institutions:
- Scale up concessional financing and liquidity at affordable costs.
- Provide long‑term financing instruments.
- Expedite disbursements and ensure efficient delivery of IDA21.
- Reinvigorate the global financial safety net and development financing architecture.
On international tax cooperation:
- Support for a global minimum tax and inclusive processes; engagement with both OECD and United Nations processes.
- UN has commenced discussions on a framework convention for international tax cooperation; more information expected "around August."
On the Common Framework for debt treatment:
- Strengthen the Common Framework to enable faster, predictable resolutions and improve official creditor coordination.
- Engage with credit rating agencies to avoid ratings actions that impede support during restructuring.

Q&A highlights — sectoral and country issues

Interest rates and U.S. monetary policy:
- High U.S. Federal Reserve rates are a significant challenge for indebted G‑24 members; higher rates would negatively affect growth and employment.
Comments attributed to U.S. Treasury Secretary Janet Yellen on Chinese over‑capacity:
- Chair did not directly address Yellen's comments; noted trade tensions and supply‑chain shifts have contributed to inflation and higher interest rates.
International tax reform and digital economy:
- G‑24 is actively engaged with OECD and UN processes; G‑24 members look forward to a more inclusive UN process.
Debt restructuring and financial architecture:
- IMF is reviewing policies, including lending into arrears and general access, to better accommodate countries undergoing restructuring.
- Need to improve alignment and speed among official creditors to help countries exit protracted debt situations.
Country‑specific points raised in Q&A:
- Ghana: Progress under the Common Framework referenced; concerns about lengthy processes and the role of credit rating downgrades in impeding support.
- Sri Lanka: Different challenges noted as a middle‑income country that does not qualify for the Common Framework.
- Pakistan: Characterized as highly indebted and climate‑vulnerable; calls for liquidity and long‑term financing. COP28 Loss and Damage Fund noted as progressing; World Bank tasked with designing its fiduciary structure. Concern that World Bank's commitment to spend 45 percent on climate‑related issues should not crowd out core development needs that affect extreme poverty.
- Nigeria: Priority is attracting investment and increased trade to expand fiscal space; concessional foreign‑currency financing remains important to ease exchange‑rate and inflation pressures. Observations that inflation is beginning to peak and exchange‑rate stability is improving in the second half of the year.
- Argentina: Ongoing daily discussions with IMF staff regarding Argentina's program; a referenced statement that "with the additional US$15 billion, he could eliminate the exchange rate restrictions" was noted in a question but not elaborated by G‑24 speakers.
- Participation: All G‑24 member countries were represented in the meeting, "including Iran."
Publications:
- A communiqué from the G‑24 and the transcript of the press conference will be posted online after the event.

Key numeric and date references (verbatim)

Date of press conference: April 16, 2024.
Target global agenda year: 2030.
IDA referred to as: IDA21.
World Bank climate spending commitment mentioned: 45 percent.
Monetary figure referenced in a question about Argentina: US$15 billion.
UN tax process timing noted: "around August."

Transcript of a Press Conference of the Chair of the Intergovernmental Group of Twenty Four (G24) on International Monetary Affairs and Development — April 16, 2024. IMF Communications Department.