IMF Chief Executive Kristalina Georgieva urges G20 leaders to jointly build the foundation for a better global economy for the 21st century

IMF Chief Executive Kristalina Georgieva urges G20 leaders to jointly build the foundation for a better global economy of the 21st century

November 22, 2020

Washington DC: Kristalina Georgieva, chief executive of the International Monetary Fund (IMF), today released the following statement following a virtual meeting of the G20 leaders summit:

“During our meeting, I commended the G20 countries as a whole for taking unprecedented action to mitigate the impact of COVID19, including fiscal and monetary measures, which have helped prevent massive bankruptcies and an even deeper crisis.

“The Debt Service Suspension Initiative, in particular, has given many poor countries a much-needed temporary ‘respite’. The common framework for debt treatments beyond the DSSI, approved by G20 leaders at this meeting, will allow low-income countries with unsustainable debt to apply for permanent debt cancellation on a case-by-case basis, with a level playing field for creditors. It is critical to get this Framework up and running promptly and effectively. Moving forward, we must also help countries not covered by the Framework address debt vulnerabilities so that their economies can become more resilient. ”

“I thanked the G20 for its support for the IMF, which has enabled us to provide over $ 100 billion in new funding to 82 countries and debt service relief for our poorest members. I also stressed that the world is not yet out of danger in terms of this crisis. Cooperation will become even more important in the future on three priority fronts:

1. First, end the health crisis. With vaccines on the horizon, we need to make sure they reach everyone, everywhere. If we do that, the Fund estimates it could add nearly $ 9 trillion to global income by 2025. There couldn’t be better value for money or the world.
2. Secondly, strengthen the economic bridge to recovery. It is essential to support support for businesses and workers until we emerge from the health crisis: there must be no premature withdrawal. It is also time to prepare for a synchronized push to invest in green and digital infrastructure to reinvigorate growth, limit scarring and address climate goals. If the G20 countries act together, they can get two-thirds more at the same cost as if each country acted alone.
3. Third, it lays the foundation for a better global economy for the 21st century. The most consequential uncertainty we face today is how we can use the disruption momentum caused by this crisis to build a better economy for all: revitalize the international trading system, promote an international tax system where everyone pays their fair share. and accelerate the transition to the new climate economy on which our children’s health and prosperity depend.