IMF Managing Director Kristalina Georgieva’s Statement at the Conclusion of G20 Leaders’ Summit

IMF News, September 10, 2023

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Canonical URL: IMF Managing Director Kristalina Georgieva’s Statement at the Conclusion of G20 Leaders’ Summit

Congratulated Prime Minister Narendra Modi for his leadership of the G20.
Noted leaders “wholeheartedly embraced the theme of India’s Presidency of "One Earth, One Family, One Future” and conveyed a strong consensus for joint action in the New Delhi Declaration.
Welcomed the African Union as a permanent member.

Described climate change as an existential threat to “economic wellbeing and macro-financial stability.”
Called for raised ambition ahead of COP28 to “decisively reduce emissions.”
Emphasized need for large investments from the international community and the private sector, and for “an appropriate price for carbon.”
Stated G20 members must lead by delivering on promises of $100 billion per year for climate finance, supported by strengthening the Multilateral Development Banks.
Reported that “At the IMF, we have secured over $40 billion to support vulnerable countries through our Resilience and Sustainability Trust (RST) to build climate resilience.”

Urged countries to mobilize domestic resources for the green transition through:
- tax reforms,
- effective and efficient public spending,
- strong fiscal institutions,
- deep local debt markets.
Noted the IMF is providing policy support and capacity development in collaboration with partners.

Observed the global economy is “gradually healing from a string of major shocks.”
Characterized the recovery as “slow and uneven, with medium-term growth prospects being the weakest in decades in an environment of still elevated inflation, high interest rates, and growing fragmentation.”
Warned of the “risk of further divergence” with richer countries more resilient and vulnerable emerging and low-income countries contending with limited buffers.
Recommended all countries pursue sound policies to support economic and financial stability and growth-oriented structural reforms.
Highlighted that in emerging and developing countries “such reforms can boost output by up to 8 percent over 4 years.”

Called for swift addressing of debt problems where they arise, including through the G20 Common Framework and the new Global Sovereign Debt Roundtable.
Urged members to strengthen the global financial safety net.
Cited IMF response since the pandemic:
- “the IMF has injected $1 trillion in reserves and liquidity through lending to nearly 100 countries and the historic SDR allocation”
- thanked members who have helped reach “the goal of channeling $100 billion to vulnerable countries.”

Stated it is “vital to reach an agreement to increase the IMF’s quota resources before the end of the year.”
Emphasized need to “secure the needed resources for the Fund’s interest-free support to the poorest countries through the Poverty Reduction and Growth Trust.”

Called to “harness the potential of digital technology” to build a prosperous future.
Cited India’s achievement in developing top-tier digital public infrastructure (DPI) as “a beacon for others.”
Noted further work is needed on digital money and crypto assets.
Reported the G20 has tasked relevant institutions to improve regulation and supervision of crypto assets, and stated “the IMF is contributing to proposals for a comprehensive policy framework.”
Said the G20 will advance the debate on how central bank digital currencies could impact the global economy and financial system.

Stressed that India’s G20 presidency demonstrates the value of international cooperation in solving global problems.
Affirmed “the IMF is playing its part” and that cooperation with the World Bank is being enhanced, referencing a joint statement with President Banga.
Expressed the intention to “further strengthen the bonds of international cooperation to create a more prosperous and resilient global economy for all.”

IMF Managing Director Kristalina Georgieva’s Statement at the Conclusion of G20 Leaders’ Summit, September 10, 2023