{ "title": "Restoring Sustainable Flows of Capital and Robust Financing for Development", "publication": "IMF News, July 8, 2020", "sourceUrl": "https://www.imf.org/en/news/articles/2020/07/09/sp070820-restoring-sustainable-flows-of-capital-and-robust-financing-for-development", "canonical": "https://www.imf.org/en/news/articles/2020/07/09/sp070820-restoring-sustainable-flows-of-capital-and-robust-financing-for-development", "overlayPath": "/en/news/articles/2020/07/09/sp070820-restoring-sustainable-flows-of-capital-and-robust-financing-for-development/index.md", "summary": "Speech by Kristalina Georgieva, IMF Managing Director.", "authors": [ "Kristalina Georgieva" ], "publishDate": "2020-07-08", "sections": [ { "heading": "Overview", "content": "- Speech by Kristalina Georgieva, IMF Managing Director.\n- High-level conference, organized by the Paris Forum and the Saudi G20 Presidency.\n- Date: July 8, 2020.\n- Key projection: From the start of the crisis until the end of 2021, the world economy is projected to face a cumulative loss of more than $12 trillion—equivalent to the combined annual output of Japan, Germany, Italy, and Spain.\n- Current state: Three-quarters of economies reopening, although gradually and with some necessary reversals; projection of only a partial recovery in 2021." }, { "heading": "The economic shock — granularity and market access", "content": "- Global policy response:\n - Fiscal measures amounting to nearly $11 trillion globally.\n - Central banks providing massive liquidity.\n- Emerging market capital market access:\n - In the first six months of this year, emerging market governments issued $124 billion in hard currency debt—two-thirds of that came between April and June, after the stop in debt issuance in March.\n- Uneven impact and vulnerable countries:\n - No market-access or unaffordable access for emerging markets with weak fundamentals, especially those with high debt levels, dependence on hard-hit sectors, or affected by conflict.\n - Regions explicitly noted: Sub-Saharan Africa, Latin America, the Middle East.\n - Special concern: Sub-Saharan Africa was on the move before the crisis; now faces a tough situation but should not lose the chance of continuing its transformation." }, { "heading": "Supporting the most affected countries — IMF actions and proposals", "content": "- IMF operational response:\n - Provided 72 financial lifelines in less than three months.\n - Total exposure of $250 billion, with more than one-third of that committed in these three months.\n - Received strong support for:\n - A doubling of access to emergency facilities.\n - A tripling of concessional financing capacity.\n- Priority actions and proposals:\n - Tune up instruments further for low-income countries and tourism-dependent small island economies.\n - Engage membership to use SDRs of advanced economies to help highly vulnerable countries (described as relatively low-cost for advanced economies and high-impact for countries in need).\n - Continue focus on countries with high debt levels; prepare for next steps after the Debt Service Suspension Initiative (DSSI), including country-by-country debt restructuring for those who cannot stay afloat without determined action.\n - Promote creditor–debtor cooperation that is rational and mutually respectful; IMF and World Bank to promote debt transparency and prudent debt restructuring.\n- Specific country mention:\n - Argentina: critical that the country and the creditors come together." }, { "heading": "Building greater resilience — priorities and policy recommendations", "content": "- Framing: Expand the concept of resilience beyond banking-sector strengthening to a broader \"new religion of the IMF\" with three dimensions:\n 1. Fiscal accountability and digital transformation\n - Governments expanding fiscal support must remain fully accountable to the taxpayer: \"spend but keep the receipts.\"\n - Use digital transformation to move governments to e-platforms to ensure efficient and transparent public spending, cut red tape, and help private businesses flourish.\n 2. Environmental sustainability\n - Policies must be environmentally sustainable.\n - Support low-carbon and climate-resilient growth and be smart about allocating additional public spending.\n 3. Investing in people\n - Invest in education, health, social protection.\n - Prevent sharp increases in inequality that this crisis could produce.\n- End goal: If opportunities are seized, emerge with a global economy that is more resilient, more efficient, more inclusive, and more sustainable.\n\nRestoring Sustainable Flows of Capital and Robust Financing for Development — Kristalina Georgieva (Speech, July 8, 2020).\n\n---\n\n\n References\n\n- https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva\n- Argentina and the IMF\n- Germany and the IMF\n- Italy and the IMF\n- Japan and the IMF\n- Spain and the IMF\n- IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet\n- Speeches\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2020/07/09/sp070820-restoring-sustainable-flows-of-capital-and-robust-financing-for-development" } ], "bullets": [ "[Markdown version](/en/news/articles/2020/07/09/sp070820-restoring-sustainable-flows-of-capital-and-robust-financing-for-development/index.md)", "[Structured JSON version](/en/news/articles/2020/07/09/sp070820-restoring-sustainable-flows-of-capital-and-robust-financing-for-development/index.json)", "[Bundle manifest](/en/news/articles/2020/07/09/sp070820-restoring-sustainable-flows-of-capital-and-robust-financing-for-development/bundle-manifest.json)", "Authors: Kristalina Georgieva", "Published: July 8, 2020", "Speech by Kristalina Georgieva, IMF Managing Director.", "High-level conference, organized by the Paris Forum and the Saudi G20 Presidency.", "Date: July 8, 2020.", "Key projection: From the start of the crisis until the end of 2021, the world economy is projected to face a cumulative loss of more than $12 trillion—equivalent to the combined annual output of Japan, Germany, Italy, and Spain.", "Current state: Three-quarters of economies reopening, although gradually and with some necessary reversals; projection of only a partial recovery in 2021.", "Global policy response:", "Emerging market capital market access:", "Uneven impact and vulnerable countries:", "IMF operational response:", "Priority actions and proposals:", "Specific country mention:", "Framing: Expand the concept of resilience beyond banking-sector strengthening to a broader \"new religion of the IMF\" with three dimensions:", "End goal: If opportunities are seized, emerge with a global economy that is more resilient, more efficient, more inclusive, and more sustainable.", "[https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva](https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva)", "[Argentina and the IMF](http://www.imf.org/external/country/ARG/index.htm)", "[Germany and the IMF](http://www.imf.org/external/country/DEU/index.htm)", "[Italy and the IMF](http://www.imf.org/external/country/ITA/index.htm)", "[Japan and the IMF](http://www.imf.org/external/country/JPN/index.htm)", "[Spain and the IMF](http://www.imf.org/external/country/ESP/index.htm)", "[IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/imf-world-bank-debt-sustainability-framework-for-low-income-countries)", "[Speeches](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2020/07/09/sp070820-restoring-sustainable-flows-of-capital-and-robust-financing-for-development/index.md", "json": "/en/news/articles/2020/07/09/sp070820-restoring-sustainable-flows-of-capital-and-robust-financing-for-development/index.json", "bundleManifest": "/en/news/articles/2020/07/09/sp070820-restoring-sustainable-flows-of-capital-and-robust-financing-for-development/bundle-manifest.json" }, "generatedAtUtc": "2026-09-25T23:46:18.881Z" }