Transcript

SPEAKERS:

Chair: Pablo Quirno, Secretary of Finance, Argentina

First Vice‑Chair: Olayemi Michael Cardoso, Governor of the Central Bank, Nigeria

Second Vice‑Chair: Muhammad Ali Malik, Minister of Finance, Pakistan

Secretariat: Iyabo Masha, G‑24 Secretariat

 

MODERATOR: Pavis Devahasadin, Communications Officer, IMF

 

Mr. Devahasadin: Good morning, ladies and gentlemen. My name is Pavis Devahasadin. I am a communications officer from the IMF’s Communications Department. I would like to welcome everyone here in this room and our online audience to the press conference of the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development, or G24.

Before we begin, I would like to remind you that we have simultaneous translation in English, French, and Spanish.

The speakers’ details in the media advisories sent before have been updated.

It is my honor to introduce the distinguished panel at this table. The Chair of the Ministers of the G24, at the center, is Mr. Pablo Quirno, Argentina’s Secretary of Finance at the Ministry of Economy. To his right is the First Vice Chair, Mr. Olayemi Michael Cardoso, Governor of the Central Bank of Nigeria. To the left of Mr. Chair is the Second Vice Chair, Mr. Muhammad Ali Malik, Executive Director at State Bank of Pakistan. And of course, at the other end of the table is the Director of the G24 Secretariat, Ms. Iyabo Masha.

Without further ado, may I invite Mr. Quirno to give some remarks. Mr. Chair, the floor is yours.

Mr. Quirno: Thank you, Mr. Chair.

Before we begin the Q&A session, I would like to extend a warm welcome to each and every one of you as we gather for this press conference.

You have at your disposal our comprehensive communiqué and press release, encapsulating the discussions held today. Allow me to briefly highlight the key takeaways.

Following a succession of adverse shocks in recent years, global growth remains below prepandemic levels, and rising policy uncertainties are generating substantial medium‑term headwinds. Emerging market and developing economies (EMDEs) are experiencing deteriorating terms of trade, reduced export volumes, and declining foreign currency earnings. While many EMDEs have ramped up domestic policy to mitigate the impact of elevated uncertainty, the constrained policy space and current uncertainty underscore the urgent need for collective and coordinated solutions, supported by multilateral institutions.

The IMF’s role, as the centerpiece of the Global Financial Safety Net, is vital in addressing these multilateral challenges and supporting vulnerable countries. Maintaining a robust and well‑resourced IMF is necessary for crisis prevention, effective response, and sustaining international monetary and financial stability. Efforts to develop approaches for further quota realignment should reflect members’ relative economic weights, without disadvantaging other EMDEs and LICs.

The World Bank’s focus on jobs and private sector development is welcome. The Bank has also made progress in implementing the evolution program. The ongoing Shareholding Review is an opportunity to resolve existing disparities and enhance the representation and voice of EMDE countries.

On the sovereign debt framework, we noted that high debt burdens and rising debt service costs continue to undermine long‑term development prospects. While supporting efforts to further improve the implementation of the Common Framework, we call for broader reforms of the sovereign debt architecture to focus on fiscal sustainability and improving country risk assessments by credit rating agencies. We emphasize the need for institutional mechanisms for crisis prevention and response to support countries with sustainable debt positions that face short‑term liquidity shocks.

On development, we call for accelerated global action. We also support equitable energy transition, supported by innovative financial instruments and multilateral collaboration.

On domestic resource mobilization and tax cooperation, we reiterated that effective domestic resource mobilization and multilateral cooperation on tax reforms are essential for mobilizing resources to finance development and address global challenges.

Lastly, we encourage renewed international cooperation and urge closer collaboration among Bretton Woods Institutions and national governments to restore confidence in the global systems.

With these remarks, I am now ready to entertain your questions.

Mr. Devahasadin: Thank you, Mr. Chair.

Before we begin the question-and-answer session, I kindly ask that all questions remain within the scope of the G24’s mandate and responsibilities. Country‑specific or other questions outside this purview should, of course, be raised during the regional press conferences taking place in the coming days.

Also, please identify yourself, your outlet, and specify to whom your question is addressed. So any first questions? The lady in the pink jacket. Thank you.

QUESTION: Thank you for the opportunity. My first question goes to the Chair.

In countries where physical buffers have eroded, how can governments responsibly rebuild space, without jeopardizing essential social services? And does the global debt architecture need to be redesigned to reflect the more reality? Thanks.

Mr. Quirno: Thank you. Thank you for your question.

I think you touched upon a very important topic of discussion. As Managing Director Georgieva always says everything starts at the domestic level. The domestic imbalances that are created through imprudent fiscal policies are at the core of domestic imbalances. And I think one of the most important aspects that countries should take into account is specifically to make their own domestic homework in their domestic finances, such that they are able to rebuild buffers to confront external shocks that every now and then happen. So in that respect, the cooperation and the collaboration that the multilateral development banks and institutions perform are very, very important, in that respect, in creating the framework for analysis and execution of those policies, such that they are able to be successful in producing such buffers in the domestic because, at the end of the day, the fundamental macroeconomic scenario of each country is what will bring growth, employment and investment into respective countries, as well.

Mr. Devahasadin: Next question, please. At the front.

QUESTION: Thank you, Mr. Chair, and other members here. Mr. Chair, this question is for you. Good morning.

In light of the communiqué’s acknowledgement that emerging and developing economies are facing deteriorating terms of trade, rising debt burdens, and also limited policy space, how can multilateral institutions like the World Bank and the IMF move in terms of ensuring that reforms—such as perhaps quota management, debt restructuring, and also resource mobilization—truly reflect the voices and vulnerabilities of these economies, rather than perpetuity in the systemic inequalities that we have seen?

Then also, for the Governor of the Central Bank of Nigeria, it would be nice to know perhaps our own opinion of at least in this meeting, October 2025. Thank you.

Mr. Quirno: Thank you very much.

I think as countries, we are part of a global framework under which the multilateral institutions play a key role, in conjunction with the different countries and different governments, in pursuing solid policies that, at the same time, address social inequalities. I mean, that is, at the end of the day, the most important aspect of what we do in the different governments and different countries. We need to constantly balance the need for growth and the need for addressing the social inequalities that arise from the different fiscal imbalances and macroeconomic disorders that sometimes our countries have faced.

With the resolution of entering into a clear path of having domestic fiscal balance and being able to put your domestic finances in order, what you have is, you basically are subtracting or reducing the weight of government in the decisions that the private market makes. And as such, that is what leads to investment, and that is what leads to growth and to the improvement of the different people within our countries. All that in coordination with the assistance that the multilateral development banks give in terms of allowing for resource mobilization and infrastructure financing in education programs, such that our labor force becomes more skilled, as well in the future. So the role is very, very important. It is interconnected. And it is part of the multilateralism that we all adhere to.

Mr. Devahasadin: Mr. Cardoso, please.

Mr. Cardoso: Thank you very much.

It has been very useful — to answer the question, it has been very useful. And it is clear to me that under the leadership of Argentina—being the Chair of the G24—we have certainly advanced the cause with the voice of the emerging economies. We have been able to get a greater—a more effective seat at the table, especially with respect to the Bretton Woods Institutions and getting our voices heard. I think that, in itself, is a major, major, major step forward. Of course, our expectation is that the very, very good work that has been done will be further deepened in the years ahead.

Mr. Devahasadin: Thank you, sir.

Mr. Malik or Ms. Masha, do you have anything to add?

1. Next question, please. The gentleman in the front. And we will move to the lady in the front, as well.

QUESTION: Thank you.

You said in your opening remarks, “We call for broader reforms of the sovereign debt architecture to focus on fiscal sustainability and improving country risk assessments by credit rating agencies.” Can you please elaborate? What kind of reforms? Maybe some specifics with respect to the current sovereign debt architecture.

And then to the CBN Governor, what kind of improvements would you like to see in the way these rating agencies assess countries like Nigeria and the other emerging countries? Thank you.

Mr. Devahasadin: Before you answer, I have an online question which is related to your question. His question is:

What measure is the G24 proposing toward member states securing debt sustainability and positive growth trajectory? So it is related to debt restructuring. If Mr. Chair and then Iyabo would like to come in later. Thank you.

Mr. Quirno: Let me first address the first question.

I think when you are talking about the debt burdens that the world, as a whole, is having and it impacts emerging market economies more significantly — because the first thing that happens in emerging markets is that access to credit is significantly reduced or eliminated. The answer to that, the answer to being able to regain debt sustainability goes hand in hand with credibility. It goes hand in hand with credibility on your policies because, at the end of the day, rising debt levels are just a result of rising fiscal disequilibriums.

So the first thing to attack is your fiscal situation because from there on, you will be able to have the resources to have a better position to refinance or restructure the debt of the different countries that face those burdens.

In Argentina, we have tried to regain that credibility and regain market access, always within the framework, the legal framework that is available to us. And as such, we are making big strides in building that credibility. And by our actions, in terms of having our fiscal discipline and monetary discipline, having growth and investment in the country is going to alleviate, as well, the debt burdens that our country and some other countries face, as well.

Mr. Devahasadin: Ms. Masha?

Ms. Masha: Yes. If I could add a little to that. I think when we talk about the reform of this sovereign debt architecture, we are really looking at the type of sovereign debt resolution that we have now, the Common Framework.

The Common Framework is really at best some kind of restructuring with a little bet of a haircut. So what we call for when we talk about a comprehensive sovereign debt restructuring framework is a framework that includes not only bilateral creditors, a few bilateral creditors, but that also includes the private sector. The private sector is currently not included. So if a country has a private sector debt, it is not included as part of the Common Framework. And that also goes with the debt to international financial institutions, like the IMF and the World Bank.

But when we look at the kind of debt resolution that we had at the turn of the century—the HIPC, the MDRI—they went much more further than what we currently have. So that is the point we make when we say that we want reform of the sovereign debt architecture.

The other issue is also about, how does the debt architecture cover countries that are just illiquid, but they are still solvent. They can pay their debt; but at a particular time, maybe there is an exogenous shock, so they cannot meet their obligations now. So the point is, what kind of facility can we have that is market‑based that those kinds of countries can quickly rely upon? And we have seen an example of how those kinds of facilities work, even in the past one or two weeks with Argentina. Thank you.

Mr. Devahasadin: Thank you, Mr. Chair and Ms. Masha.

I promised to come to you, to the lady in the beige in the front. And then I see some hands. I am going to that side of the room later.

QUESTION: Yeah. Thank you. My question is to the Vice Chair, Mr. Cardoso. In these meetings, what are the core messages in terms of how the G24 is trying to protect the interests of developing countries and emerging economies? Thank you.

Mr. Devahasadin: Are there any other questions for Mr. Cardoso?

QUESTION: Thank you. A follow‑up question to that for Governor Cardoso. I was wondering if you could talk a little bit about trade and tariffs, the impact on your countries. One, you know the impact of the U.S. tariffs, of course, how they are impacting your countries; but also, the Chinese now being shut out of the U.S. market and sending a lot of their goods to your countries, particularly Africa. Is that undermining industrialization efforts? I am just wondering if you have a common position on what needs to be done on the dual attacks on the trade front. Thank you.

Mr. Devahasadin: Would you like to respond with your takeaway?

Mr. Cardoso: Yeah. Well, firstly, I think it is important to say that the G24 is a body—as far as I can see—with various countries who have common interests. And to the extent that is the case, they have been relatively successful in having a dialogue. Like, for example, this morning, we had a dialogue with both the Managing Director of the IMF, as well as the representative of the Managing Director [President] of the World Bank, where there was an exchange of ideas and an exchange of discourse that basically helps the leadership of the Bretton Woods Institutions to better understand directly from the players what the issues are and where the pain points really are. So from that perspective, I think it is really a very effective engagement. And this, as you all know, is something that goes on on a regular basis. And of course, the communiqué that comes out also is very, very, very useful in the sense that it moves from issues of domestic resource mobilization to inflation and all the various commonalities that the G24 members have. So from that perspective, I think it has been pretty effective. And they learn from us, and we also learn from them.

And there are certain things that came out today that I found quite useful. They were talking about the fact that growth is behind but not as behind as it would have been expected to be. And also, the fact that one of the issues that can help to get many of our countries out of the difficult situation, of course, are macroeconomic policies and sound macroeconomic policies at that. And the correlation between those who have adopted sound macroeconomic policies and growth and disinflation and obviously having to stay the course. So those are very, very critical issues that came out.

With respect to trade and tariffs. From Nigeria’s perspective, frankly, it is less of a problem for us. And I think we were very fortunate because a lot of the things that were needed to have been done, we did it much earlier. And as a result of that, we were able to create resilience and buffers against potential shocks.

And of course, in terms of anchoring expectations, we found that those who followed the Nigerian economy were fairly comfortable. And for us, again, oil is basically the only commodity that was so exposed, and the impact on that was relatively modest.

Now we have a more competitive currency because — to the question you asked on China, we have a more competitive currency with that result that, for once, we have a situation where we have a positive balance of trade. We have a trade surplus. And we expect it to be 6 percent of GDP or thereabouts and remain at that for some time. Basically, what is happening is a complete restructuring of the economy, with the competitive currencies encouraging people to go into domestic production and, of course, discouraging imports.

Mr. Devahasadin: Thank you, Governor.

I am going to move to that side of the room. I think a hand from the lady in the black jacket. Yes, please. The microphone is next to you.

QUESTION: Hello.  We are doing digital bonds, which I would like to bring because we are also working with FT and SG Global. We are sharing our progress of a pilot in South Africa. So I would like to hear your opinion about what you feel about involving private capital because digital bonds attract new investor classes.

Mr. Devahasadin: Maybe this is a good question for Ms. Masha? Or this is not? I think you should raise the question in other press conference on digital bonds.

Sir with the pink tie.

QUESTION: Thanks. Igor Naimushin with RIA News Agency, D.C. Bureau.

Frankly speaking, a question to all the participants. What are your attitudes toward settling bilateral trade to national currencies? To answer this, what advantages and disadvantages do you see? And what is your country’s stance on this issue. Thank you.

Mr. Devahasadin: Could you repeat your question again?

QUESTION: The question is about switching to national currencies in bilateral trade. What is your country’s attitude toward this issue? And what advantages and disadvantages do you see? Thank you.

Mr. Devahasadin: That is a very complex question, but we have 5 minutes left. So I just want to remind every panelist that we have only 5 minutes, so maybe a quick response, if you would like to jump in.

Mr. Malik: From Pakistan’s perspective, we have been working quite hard to diversify and settle some trade in local currencies. We have signed a currency swap agreement with the People’s Republic of China, with the central bank of China. And one of the objectives is to assist in the transition to local currency. So we are very keen on that. And gradually, we are working on that to diversify.

Our objective is just to diversify. And it is really up to the choice of traders, importers, and exporters in which currencies they want to denominate. But we, as a central bank, want to provide an enabling environment to businesses so that they can make a choice, a commercial choice if they want to determine or denominate their trade in local currency. So we are supportive of that, and we are working hand in hand with the industry there. Thank you.

Mr. Devahasadin: Mr. Chair, Mr. Cardoso, would you like to respond?

Mr. Cardoso: We have had an experiment with that. And to be frank, it did not work out very well for us. That is not to say that we are not interested in doing this. We are. And we are really at an elementary stage of putting up a framework, now that our currency is more competitive, to be able to ensure that it is a win‑win for everybody.

Mr. Quirno: In terms of local currencies and being used, our local currency, in trade, Argentina has historically had a very weak currency. And as such, we have been trading in what global currencies—mostly US dollars, euros, yen, and renminbi, as well. So we are in no position to force anyone to accept our local currency yet. It will come with time.

Mr. Devahasadin: So we have another online question. This is to Ms. Masha. How could the G24 help Syria in building its economy, which is a member of the G24.

Ms. Masha: Thank you for that.

Well, the challenges that Syria faces are multifaceted. And some of them can be solved by more financing, but a lot has to do with institution building, with reconstruction, the devastation of war, and also how the government proceeds in terms of how it is working with its neighbors.

Now, based on the last IMF assessment, I think the focus obviously has to be on the macroeconomic stability. I think that is the first port of call. And for a country that the GDP has declined by about 50 percent over the past 10 years, it is a long way to go. And I am of the view that the international financial institutions, the IMF and the World Bank, are already in the process of putting together some kind of support. The World Bank has support for fragile and post‑conflict states. That could be something the Syrians will find attractive, and the IMF also has that. But given where the country is now, a lot of those advances have to be concessional, very, very concessional because it is just not in a condition where it can really support or be able to service loans that are high cost.

So I will say that, yes, from our own perspective, we see the kind of facilities they qualify for; but also, the government has to have that comprehensive plan on how it wants to proceed. And as the G24, we are always working together with tax authorities in member countries, with the central banks, with the fiscal agents. We are always developing positions that are shared and are also having a lot of seminars, where policymakers can really get to do these things better.

Mr. Devahasadin: Are there any other thoughts from other panelists?

We see the clock is ticking down, so I am going to close this session. We are at time. The G24 communiqué should have been posted on IMF.org. The transcript of this conference will be made available later. Thank you very much for joining this press conference in this room and also from online. So have a good rest of your day. Thank you.