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

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

September 10, 2023

New Delhi, India – September 10, 2023: International
Monetary Fund Managing Director Kristalina Georgieva made the following
statement today at the G20 Leaders’ Summit in New Delhi, India:

“I would like to congratulate Prime Minister Narendra Modi for his
successful leadership of the G20. Leaders wholeheartedly embraced the theme
of India’s Presidency of “One Earth, One Family, One Future” and
conveyed a strong consensus for joint action to address global challenges
in the

New Delhi Declaration

. I am also very pleased that the G20 welcomed the African Union as a
permanent member.

“Our one and only earth is threatened by existential
climate change. Ahead of COP28, we must raise ambition to decisively reduce
emissions to prevent grave risks to economic wellbeing and macro-financial
stability. Transforming this ambition into reality will require large
investments both from the international community and the private sector,
as well as an appropriate price for carbon.

“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. At the IMF, we have secured over $40
billion to support vulnerable countries through our

Resilience and Sustainability Trust

(RST) to build climate resilience.

“At the same time, countries also need to mobilize 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. To help countries in this effort, the IMF is providing policy
support and capacity development in collaboration with partners.

“Our family of economies is gradually healing from a string
of major shocks. But the recovery is 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. The
risk of further divergence is real, with richer countries being more
resilient to shocks and vulnerable emerging and low-income countries
contending with limited buffers.

“Against this background, all countries should pursue sound policies to
support economic and financial stability and growth-oriented structural
reforms. This is especially important in emerging and developing countries,
where such reforms can boost output by up to 8 percent over 4 years.

“We also need to further invest in international cooperation. This implies
swiftly addressing debt problems where they arise, including through the
G20 Common Framework and the new

Global Sovereign Debt Roundtable

.

“And I call on our members to strengthen the global financial safety net.
Since the start of the pandemic, the IMF has injected $1 trillion in
reserves and liquidity through lending to nearly 100 countries and the
historic SDR allocation; and I thank our members who have helped us reach
the goal of channeling $100 billion to vulnerable countries.

“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 and secure the needed resources
for the Fund’s interest-free support to the poorest countries through the
Poverty Reduction and Growth Trust.

“To build a prosperous future, we need to harness the
potential of digital technology. India’s achievement in developing top-tier
digital public infrastructure (DPI) stands as a beacon for others.

“More work lies ahead, including in the realm of digital money and crypto
assets. To this end, the G20 has tasked relevant institutions to improve
regulation and supervision of crypto assets—the IMF is contributing to
proposals for a comprehensive policy framework; and advance the debate on
how central bank digital currencies could impact the global economy and
financial system.

“India’s G20 presidency is a powerful reminder that when the international
community comes together to solve global problems, much can be
accomplished. The IMF is playing its part, and we are enhancing cooperation
with the World Bank in key areas as President Banga and I underscored in

our joint statement

. I look forward to further strengthening the bonds of international
cooperation to create a more prosperous and resilient global economy for
all.”