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Remarks by IMF Managing Director Kristalina Georgieva During an Extraordinary Conference Call of G20 Finance Ministers and Central Bank Governors

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Via IMF (Den Internationale Valutafond)

Remarks by IMF Managing Director Kristalina Georgieva During an Extraordinary Conference Call of G20 Finance Ministers and Central Bank Governors







March 31, 2020















Washington, DC
International Monetary Fund (IMF) Managing Director Kristalina Georgieva
made the following remarks today during an extraordinary conference call of
G20 Finance Ministers and Central Bank Governors:

“Thank you to the Saudi G20 presidency for calling this extraordinary
meeting.

Outlook

“We welcome the decisive actions many of you have taken to shield people
and the economy from COVID-19, that led to a decline in volatility in major
financial markets in recent days. Nonetheless we remain very concerned
about the negative outlook for global growth in 2020 and in particular
about the strain a downturn would have on emerging markets and low-income
countries.

“Our forecast of a recovery next year hinges on how we manage to contain
the virus and reduce the level of uncertainty.

“Thus, we support an ambitious G20 action plan to strengthen the capacity
of health systems to cope with the epidemic; to stabilize the world economy
through timely, targeted and coordinated measures; and to pave the way
towards recovery.

IMF reforms

“And we will do our part. In fact, we got a strong mandate last Friday from
our governing body, the International Monetary and Financial Committee
(IMFC), on reforms to strengthen our crisis response.

In particular, it endorsed initiatives to:

  • Enhance access to our emergency facilities, as now some 85 countries
    indicate they rely on them for financial support;
  • Build up our capacity to serve our poorest members; and
  • Help countries experiencing foreign exchange shortages, including
    possibly by short-term liquidity line.

“We also have good news on IMF resources.

“The U.S.

recently approved

the doubling of the New Arrangements to Borrow, and our Executive Board

yesterday agreed

on a new round of bilateral borrowing to secure the IMF’s $1 trillion
lending capacity.

Debt relief

“Lastly, I would like to direct your attention to the issue of debt of
low-income countries.

“Starting with their debt obligations to the IMF, I am pleased to report
that our Executive Board

last Thursday approved

a reform of the Catastrophe Containment and Relief Trust (CCRT) that allows
our poorest member countries to invest in crisis response rather than repay
the Fund. I want to thank G20 members who have pledged financial support
for the CCRT and call on others to join.

“And I support the G20 to urgently work on further easing the debt burden
of our poorest members.

“At a time the world economy is at a standstill, official bilateral
creditors could make a major contribution by offering a debt standstill to
IDA-eligible countries, as World Bank Group President David Malpass and I

proposed

during our last meeting.

“It will also be important for other creditors to do their part, and I
count on the G20 to help build consensus on a way forward for our poorest
members.”


IMF Communications Department
MEDIA RELATIONS

PRESS OFFICER: Alistair Thomson

Phone: +1 202 623-7100Email: MEDIA@IMF.org

@IMFSpokesperson








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