Kristalina Georgieva, the IMF’s chief, said on Sunday that it is crucial to enhance quota resources for the organization before the end of the year and urged G20 participants to follow through on a pledge to provide $100 billion annually in climate funding.
The organization made a commitment to address debt vulnerabilities in low- and middle-income countries “in an effective, comprehensive, and systematic manner” in a statement following its summit this past weekend in New Delhi, but it did not present a new plan of action. At the conclusion of the two-day meeting, Georgieva stated in a statement, “G20 members must lead by example in delivering on the promises of $100 billion per year for climate finance, supported by strengthening the multilateral development banks.”
“Countries also need to mobilise domestic resources to finance and manage the green transition through tax reforms, effective and efficient public spending, strong fiscal institutions, and deep local debt markets.”
She urged the grouping to strengthen the global financial safety net.
“To make the global economy stronger and more resilient in a more shock-prone world, it is vital to reach an agreement to increase the IMF’s quota resources before the end of the year,” she said.
Such a pact would secure resources needed for the Fund’s interest-free support to the poorest countries through the Poverty Reduction and Growth Trust, she added.
The G20 summit also pledged to strengthen and reform multilateral development banks, while accepting a proposal to regulate cryptocurrencies more tightly worldwide.
“More work lies ahead, including in the realm of digital money and crypto assets,” Georgieva said.