{
  "title": "IMF Managing Director Remarks at the Summit for a New Global Financing Pact",
  "publication": "IMF News, June 22, 2023",
  "sourceUrl": "https://www.imf.org/en/news/articles/2023/06/22/sp062223-md-remarks-at-summit-for-new-global-financing-pact",
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  "summary": "Thank you, President Macron, for hosting this Summit and for bringing such incredible energy to these important issues of debt, climate, and financing for development. And thank you for bringing the new World Bank President, Ajay Banga, and me on stage together for the first time in our new roles.",
  "publishDate": "2023-06-22",
  "sections": [
    {
      "heading": "A rapidly changing and unbalanced world",
      "content": "- Historical and membership context:\n  - In 1944 there were 99 countries.\n  - The IMF now has 190 members.\n- Aggregate changes since 1944:\n  - Global population has more than tripled.\n  - The world economy – as measured by GDP -- increased more than 10 times.\n  - Average income per capita has more than tripled.\n- Key global imbalances identified:\n  - Geographic mismatch between youth and capital: need to build a bridge for capital to flow where young people are to create jobs and prosperity.\n  - Climate imbalance: sources of emissions are primarily in advanced economies and large emerging market economies, while the worst impacts fall on countries that have not caused the problem.\n  - Financial capacity imbalance: financial resources are much larger in some places than in others, reducing some countries’ ability to cope with a more shock-prone world."
    },
    {
      "heading": "Adapting institutions: mandate and implementation",
      "content": "- Core IMF mission restated:\n  - Macroeconomic and financial stability, growth, and employment.\n- Imperative to take a more comprehensive view in implementing the mandate:\n  - Resilience of people: ensure they are educated, healthy and have good social protection.\n  - Resilience of society: extend focus beyond the banking sector to address unfairness and injustice that undermine economic outcomes.\n  - Resilience of the planet: incorporate climate considerations into the Fund’s work.\n- Institutional implications:\n  - Examine how the IMF and World Bank work, their priorities, and the instruments they deploy to address the multi-dimensional challenges described."
    },
    {
      "heading": "Well-resourced reinvigorated multilateralism — financing priorities and initiatives",
      "content": "- Poverty Reduction and Growth Trust (PRGT):\n  - The IMF has almost reached the resources needed to meet demand for the PRGT.\n  - Higher demand and higher interest rates create a subsidy gap of US$1.2 billion that must be closed to preserve concessional lending terms for the most vulnerable borrowers.\n  - Appeal to Summit participants: close the US$1.2 billion subsidy gap.\n- Special Drawing Rights (SDRs) rechanneling:\n  - Original target for rechanneling SDRs was set at US$100 billion.\n  - The target of US$100 billion has been reached.\n  - Channeling requests escalated over time: 20 percent of 2021 allocation → 30 percent → now an ask of 40 percent.\n  - Current status: close to US$60 billion in pledges to be channeled through the Resilience and Sustainability Trust (RST) and through the PRGT.\n- Resilience and Sustainability Trust (RST):\n  - The RST has raised more than US$40 billion — close to the original target.\n  - IMF request at the Summit: lift ambition by an additional US$20 billion for the RST.\n  - RST features:\n    - Long-term financing with a 20-year repayment period and a 10-year grace period.\n    - Concessional financing to vulnerable middle-income countries.\n  - Implementation and partnerships:\n    - RST programs are underpinned by World Bank analytics, such as Country Climate and Development Reports, which support two thirds of RST programs.\n    - RST is working with other institutions, including the European Investment Bank, the African Development Bank, and the Inter-American Development Bank.\n  - Current beneficiaries and near-term expectations:\n    - Seven countries are already benefiting from the RST.\n    - Hope for another 10 countries to benefit next year.\n- Upcoming engagement:\n  - President Banga and the Managing Director will go to Morocco for the IMF and World Bank Annual Meetings in October — the first time in half a century that the meetings will take place on the African continent.\n  - A strong International Development Association (IDA) and a strong PRGT are highlighted as necessary to deliver for Africa."
    },
    {
      "heading": "Closing argument and policy orientation",
      "content": "- The Managing Director’s framing:\n  - Global average income increases do not guarantee income convergence for those lower down the income spectrum.\n  - Without restarting the engine of income convergence, rising average global income will not improve the lives of those whose incomes are lagging.\n- Institutional commitment:\n  - The IMF and World Bank are committed to ensuring income convergence and addressing the imbalances that hinder shared prosperity.\n\nIMF Managing Director Remarks at the Summit for a New Global Financing Pact — As Prepared for Delivery, June 22, 2023.\n\n---\n\n\n References\n\n- https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva\n- Morocco and the IMF\n- Speeches\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2023/06/22/sp062223-md-remarks-at-summit-for-new-global-financing-pact"
    }
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    "Published: June 22, 2023",
    "Historical and membership context:",
    "Aggregate changes since 1944:",
    "Key global imbalances identified:",
    "Core IMF mission restated:",
    "Imperative to take a more comprehensive view in implementing the mandate:",
    "Institutional implications:",
    "Poverty Reduction and Growth Trust (PRGT):",
    "Special Drawing Rights (SDRs) rechanneling:",
    "Resilience and Sustainability Trust (RST):",
    "Upcoming engagement:",
    "The Managing Director’s framing:",
    "Institutional commitment:",
    "[https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva](https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva)",
    "[Morocco and the IMF](http://www.imf.org/external/country/MAR/index.htm)",
    "[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)"
  ],
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