## Joint IMF-RFAs Press Release on the 6th High-Level RFA Dialogue _IMF News, October 12, 2021_ ## Source details **Canonical URL:** [Joint IMF-RFAs Press Release on the 6th High-Level RFA Dialogue](https://www.imf.org/en/news/articles/2021/10/12/pr21298-joint-imf-rfas-press-release-on-the-6th-high-level-rfa-dialogue) ## Other formats - [Markdown version](/en/news/articles/2021/10/12/pr21298-joint-imf-rfas-press-release-on-the-6th-high-level-rfa-dialogue/index.md) - [Structured JSON version](/en/news/articles/2021/10/12/pr21298-joint-imf-rfas-press-release-on-the-6th-high-level-rfa-dialogue/index.json) - [Bundle manifest](/en/news/articles/2021/10/12/pr21298-joint-imf-rfas-press-release-on-the-6th-high-level-rfa-dialogue/bundle-manifest.json) ## Bibliographic details - Published: October 12, 2021 --- ### Meeting purpose and participants - The International Monetary Fund (IMF) and Regional Financing Arrangements (RFAs) held their sixth High-level RFA Dialogue to reflect on how best to leverage close institutional ties to help members move from crisis to recovery. - Participants included the Managing Director of the IMF and the heads of seven RFAs: Arab Monetary Fund; the ASEAN+3 Macroeconomic Research Office as the surveillance unit of the Chiang Mai Initiative Multilateralisation Agreement; the BRICS Contingent Reserve Arrangement represented by the Reserve Bank of India; Eurasian Fund for Stabilization and Development; European Commission; European Stability Mechanism; and the Latin American Reserve Fund. - The Dialogue reaffirmed commitment to multilateralism and close collaboration between the global and regional layers of the Global Financial Safety Net (GFSN). ### Assessment of the global and regional outlook and risks - Key observations: - The COVID-19 pandemic continues to flare. - Recovery is highly uneven globally and the outlook is uncertain. - Uneven access to vaccines and the possibility of new viral mutations increase risks. - Policy guidance: - Policy action should be tailored to country-specific circumstances. - The aim is maximum sustainable employment while protecting the credibility of policy frameworks. - Continued close collaboration between IMF and RFAs is crucial to support a more even, robust, inclusive, and sustainable recovery. ### IMF support, financing, and recent reforms (exact figures preserved) - Since the beginning of the crisis, the IMF has provided financial support of US$118 billion to 87 countries, of which 54 countries are low-income countries. - The IMF has provided about US$860 million in debt service relief to 31 of its poorest members. - Concessional financing and policy reform in July will ensure that the Fund can flexibly support low-income countries’ financing needs during the pandemic and the recovery while continuing to provide concessional loans at zero interest rates. - The largest allocation of Special Drawing Rights (SDRs) in the IMF history—about US$650 billion—came into effect in August 2021. - IMF readiness and priorities: - The IMF stands ready to support countries vaccinate the population, calibrate policies carefully to their specific circumstances, and accelerate the structural transformation. - The IMF is encouraging voluntary channelling of SDRs from countries with strong external positions to those most in need. ### Options to magnify SDR benefits (as listed) - Scaling up resources for the IMF’s concessional financing through the Poverty Reduction and Growth Trust. - Establishing a new Resilience and Sustainability Trust (RST) to help the most vulnerable countries with structural transformation, including confronting climate-related challenges. - Lending by multilateral development banks. ### RFAs’ responses and institutional adjustments - RFAs reported steps to become more resilient and better address members’ needs, including: - Preparation of mid-term strategies by some RFAs (in line with respective mandates and varying circumstances). - Scaling up technical assistance and capacity building efforts. - Advancing governance reforms. - Enhancements in operational readiness, provision of COVID-19 financial assistance, tailored economic monitoring, and capacity building at the outset of the crisis. - RFAs welcomed a staff-prepared study on regional responses to the COVID-19 crisis and look forward to its forthcoming publication. - The joint endeavour demonstrates dedication to sharing crisis prevention and management experiences. ### External inputs and multilateral coordination - The IMF and RFAs appreciated the dialogue with Mr. Agustin Carstens, General Manager of the Bank for International Settlements, on lessons from the COVID-19 crisis for the GFSN. - An update from the French co-chair of the G20 International Financial Architecture Working Group on the group’s priorities, especially regarding a well-functioning global safety net for a strong, inclusive recovery, was considered timely. - A shared conclusion: the increasing risk of more frequent and severe shocks to the international monetary system calls for building resilience and strong multilateral collaboration. ### Next steps and future meetings - The IMF and RFAs welcomed the Arab Monetary Fund’s initiative to host a special meeting of the RFA heads in Abu Dhabi in early 2022. - The seventh High-level RFA Dialogue will be convened at the time of the next IMF/World Bank Annual Meetings in October 2022. *Joint IMF-RFAs Press Release on the 6th High-Level RFA Dialogue — Press Release No. 21/298 (October 12, 2021), IMF Communications Department.* --- ## References - [https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva](https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva) - [India and the IMF](http://www.imf.org/external/country/IND/index.htm) - [Press Releases](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) _Source: https://www.imf.org/en/news/articles/2021/10/12/pr21298-joint-imf-rfas-press-release-on-the-6th-high-level-rfa-dialogue_