Transcript of a Press Conference of the Chair of the Intergovernmental Group of Twenty Four (G24) on International Monetary Affairs and Development

IMF News, October 11, 2023

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Bibliographic details

• Published: October 11, 2023

Event details and participants

• Date: October 11, 2023
• Press officer contact provided: Phone: +1 202 623-7100 Email: MEDIA@IMF.org
• Moderator: Mr. Andrew Kanyegirire, IMF
• Speakers:
  • Mr. Adama Coulibaly, Minister of Economy and Finance, Côte d’Ivoire — G‑24 Chair
  • Mr. Benjamin E. Diokno, Secretary of Finance of the Philippines — G‑24 1st Vice Chair
  • Ms. Cecilia Nahon, World Bank Group Executive Director representing Argentina, Bolivia, Chile, Paraguay, Peru, and Uruguay — G‑24 2nd Vice Chair
  • Ms. Iyabo Masha — G‑24 Secretariat
• Deliverables: A Communiqué and a press release were announced as forthcoming and available in the Press Center.

Global economic assessment and key challenges highlighted

• Multifaceted crises identified:
  • Natural disasters and geopolitical tensions
  • Sluggish economic recovery
  • Moderating inflation with a slower decline in food and energy prices
  • Declining access to financing and increasing interest rates prompting capital movements and heightened financing risks, particularly for developing countries
  • Setbacks in development and climate goals
• Divergence in the global economy noted, with particular concern for the inability of many countries of the global south to recover pre‑COVID economic trajectories (discussion referenced the IMF World Economic Outlook).

IMF instruments, policies, and G‑24 requests

• Resilience and Sustainability Trust (RST)
  • G‑24 commends IMF efforts via the RST but calls for an easing of requirements so that more countries can benefit.
• Poverty Reduction and Growth Trust (PRGT)
  • G‑24 calls for an increase in donations to the PRGT to support the poorest countries.
• Global Financial Safety Net (GFSN)
  • Emphasis on a robust GFSN with an adequately‑funded IMF at its core.
  • Call for a review of the IMF surcharge policy, characterized as "a huge financial burden on countries at a time of economic uncertainty."
• IMF governance and quotas
  • Reiteration of the call for timely completion of the IMF Sixteenth General Review of Quotas, including agreement on a revised quota formula.
  • Requested direction for the quota formula to shift allocations "from advanced economies to dynamic emerging markets and developing economies" to reflect increasing global influence while safeguarding representation of poorer nations.
  • Specific call for implementation of an "long overdue increase in the representation of Sub‑Saharan Africa at the IMF Executive Board."

World Bank Group and multilateral development banks (MDBs)

• G‑24 applauds deliberations regarding the evolution of the World Bank Group.
• Reaffirmed World Bank core goals: eradicating extreme poverty and fostering shared prosperity while helping developing countries achieve Sustainable Development Goals (SDGs).
• Asked MDBs to increase support beyond climate and pandemic issues to include:
  • Access to affordable water and energy
  • Human capital development
  • Digital advancement
  • Debt sustainability

Debt challenges, Common Framework, and debt treatment requests

• Overall position:
  • Urgent global action called for to assist developing countries managing escalating debt vulnerabilities.
  • Advocacy for debt cancellation targeted at the "most vulnerable and poor countries" whose debt is largely owed to MDBs and the IMF.
• G‑20 Common Framework
  • G‑24 does not characterize the Common Framework as a wholesale failure; it has made it possible to address issues.
  • For greater effectiveness, G‑24 calls for all creditors — including private creditors — to be convened around the table to reach implementable solutions.
  • Emphasis that solutions require participation of all relevant creditors to avoid difficulties in implementation.
• Super‑seniority and IMF/World Bank claims
  • Discussion noted: some public debate over whether IMF and World Bank creditor positions should be revisited in restructuring (e.g., Zambia cited in the question), but G‑24 statements stressed inclusivity of all creditors rather than singling out a change to creditor seniority rules.
• Country example and process notes:
  • Sri Lanka: noted as having declared bankruptcy in 2022 and continuing restructuring efforts; reported progress under the Common Framework with a roundtable scheduled to meet in Marrakech during the week referenced.

Climate, taxation, trade, and development policy priorities

• Climate
  • Urged all nations to fulfill nationally‑determined contributions under the Paris Climate Agreement.
  • Called for enhanced climate financing for mitigation, adaptation, and loss and damage.
  • Stressed that climate action should not displace efforts to fight poverty and finance development.
• Taxation
  • Emphasized international tax cooperation for equitable tax rules to generate resources for economic recovery, climate action, and SDGs.
  • G‑24 expressed support for the United Nations General Assembly resolution on an inclusive and efficient tax reform initiative.
• Trade
  • Expressed concern about mounting trade protectionism and slow reforms in the global trading system.
  • Encouraged strengthening the World Trade Organization to design a resilient multilateral trade system.

Food security and IMF Food Shock Window

• Food Shock Window
  • Noted that the Food Shock Window was intended as temporary and was supposed to expire in the referenced year.
  • IMF Board agreed to extend the Window in response to persistent food shocks and inflation, providing more countries an opportunity to qualify and use the Window.
  • G‑24 expressed approval of the extension given continued high food prices affecting many member countries.

Engagement with civil society and transparency

• G‑24 supports engagement with civil society as a partner and important actor that relays concerns on debt and other issues.
• Calls for transparency and inclusive engagement of civil society, MDBs, regional development banks, multilateral creditors, and private creditors to develop comprehensive solutions.

Statistics and quantifications referenced in discussion

• G‑24 membership implied by name: Twenty Four (24).
• Number of countries cited with default-level issues historically: 52 countries; of those, 23 are African countries referenced as having had problems and could not pay creditors.
• Country-specific date referenced: Sri Lanka declared bankruptcy in 2022.

Transcript of a Press Conference of the Chair of the Intergovernmental Group of Twenty Four (G24) on International Monetary Affairs and Development, October 11, 2023, IMF Communications Department

References

• PRESS CENTER
• COMMUNIQUÉ
• https://www.imf.org/en/home