Press Briefing Transcript: Intergovernmental Group of Twenty-Four (G24), Spring Meetings 2025
IMF News, April 24, 2025
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- Published: April 24, 2025
Key takeaways
- Recent global developments have driven uncertainty to "elevated levels," disproportionately affecting emerging market and developing economies (EMDEs).
- EMDEs face combined external and domestic challenges that constrain fiscal space and pose macroeconomic stability risks.
- Domestic policymaking is framed as the "first line of defense" to enhance short‑term responsiveness and medium‑term growth capacity.
- Mobilizing international support and strengthening the Global Financial Safety Net are essential complements to domestic reforms.
External challenges and debt dynamics
- Many EMDEs continue to face "elevated public debt levels and rising debt servicing burdens."
- "Still tight global financial conditions" are exacerbating those challenges, constraining fiscal space and forcing tradeoffs between repaying creditors and investing in productivity, growth, and development.
- Debt maturities and rising debt service payments hinder fiscal consolidation plans needed to tackle domestic imbalances and maintain price stability.
- Specific reference to Argentina: "more than 4 billion in debt many coming due for Argentina in July" (question referenced by press).
Domestic policy priorities and structural reforms
- Core domestic drivers of macroeconomic instability: weak fiscal fundamentals and longstanding structural policy challenges that reduce productivity and competitiveness.
- Policy prescriptions emphasized:
- Solid macroeconomic frameworks.
- Clear rules to foster a predictable environment for private investment.
- Fiscal consolidation to set debt on a sustainable path and rebuild buffers.
- Productivity‑enhancing, market‑oriented structural reforms.
- Careful policy calibration to maintain social cohesion and protect the most vulnerable during adjustment.
Role of Bretton Woods institutions and multilateral development banks (MDBs)
- The IMF is described as a "centerpiece of the Global Financial Safety Net" with a vital role in addressing multilateral challenges and supporting vulnerable countries.
- Appreciation for IMF reforms to support EMDEs, "such as the recent review of the charges and surcharges policies."
- Calls for decisive actions to fortify the Global Financial Safety Net and broaden development finance, including:
- Intensifying surveillance of internal and external stability and spillovers from systematically important countries.
- Further progress on operationalizing frameworks of financial incentives and reducing IBRD loan pricing.
- Faster implementation of remaining G‑20 Independent Experts Groups Recommendations on MDB reforms, including mitigating currency risks through local currency lending and domestic capital market reforms, de‑risking private‑sector investment, and increasing capital within the WBG and across the MDB system.
- "Swift progress on the 2025 shareholding review" to address misalignments, strengthen voice and representation, enhance IBRD legitimacy, and ensure equitable voting power.
Debt restructuring and the Common Framework
- The Common Framework has been used by some countries and found beneficial, but concerns remain:
- The process "takes a very long time," during which countries may be unable to access markets or must take difficult decisions without clarity on outcomes.
- Recommendations include increased participation of private creditors and multilateral development banks and clearer mechanisms for how restructuring will play out.
- G‑24 requests reforms to speed and broaden the Framework’s effectiveness.
Argentina: fiscal consolidation and social outcomes (as presented)
- Argentina implemented an aggressive consolidation since the current administration took office:
- "Reduced 5 percentage points of GDP deficit in a month."
- The economy rebounded two months after that fiscal consolidation, following a "two and a half years long" recession.
- Real wages "have increased for 10 months straight."
- Poverty reduced from "54 percent to 38 percent in about a year."
- Economic activity increased "6 percent December 2024 from December 2023."
- The government reports having "already accumulated reserves" and the Treasury "has bought a significant amount of dollars" at the central bank to honor upcoming obligations.
- Social assistance: reported that nominal spending moved from "100" to "200" in real terms and beneficiary receipt increased from "60" to "200" (Chair’s illustrative comparisons).
Trade tensions, tariffs, and macro tradeoffs
- Trade tensions and tariffs increase volatility and interact with capital flow uncertainty to amplify risks for EMDEs.
- The G‑24 emphasizes domestic resilience (credible fiscal and monetary policy) as the primary response while coordinating internationally.
- On policy tradeoffs: balancing inflationary risks versus recessionary risks in a tariff environment remains uncertain; trade negotiations’ outcomes will shape future trajectories.
Coordination, reserves, and central bank engagement
- G‑24 members coordinate on monetary and financial stability issues through Deputies meetings and ministerial discussions within the G‑24 platform.
- Central banks (including the State Bank of Pakistan) coordinate with peers, and these issues are discussed in G‑24 deputies’ and ministerial meetings; specific national actions may be addressed in separate country conferences.
Climate, development finance, and SDG financing
- Financing for climate action, energy transition, and infrastructure remains constrained for many G‑24 members; private financing is often inaccessible for these needs.
- Development finance (World Bank, MDBs) is critical to finance transitions and infrastructure while countries balance macroeconomic constraints.
- Concerns noted about shifts in financing from advanced economies and the need to sustain and scale multilateral development financing.
Procedural and contact information
- Speakers: Chair Pablo Quirno (Secretary of Finance, Argentina); First Vice‑Chair Olawale Edun (Federal Minister of Finance, Nigeria); Second Vice‑Chair Jameel Ahmad (Governor, State Bank of Pakistan); Director Iyabo Masha (G‑24 Secretariat).
- Moderator/Press contact: Pavis Devahasadin, Communications Officer, IMF. Phone: +1 202 623-7100. Email: MEDIA@IMF.org.
- Follow‑up queries directed to: press@G24.org.
- The communiqué was made available on IMF.org; the transcript will be posted later.
Press Briefing Transcript: Intergovernmental Group of Twenty‑Four (G24), Spring Meetings 2025 — April 24, 2025, IMF Communications Department