In addition, the G20 asked the IMF to establish a new Resilience and Sustainability Fund to finance long-term low- and middle-income countries. In line with what the Government of Alberto Fernández has been requesting, this financing would reduce future risks to the stability of the balance of payments, including those derived from pandemics and climate change.
WHAT DOES THE RELEASE SAY?
IMF SURCHARGE POLICY
We thank the IMF for its update on surcharge policy and we look forward to further discussion in the IMF Executive Board in the context of the interim review of precautionary balances.
SPECIAL DRAWING RIGHTS (SDR)
We celebrate the blanket allocation of SDRs implemented by the International Monetary Fund (IMF) on August 23, 2021, which has made available the equivalent of $ 650 billion in additional reserves globally.
We appreciate the recent progress made by the IMF in offer viable options to members with strong external positions to voluntarily channel a portion of their allocated SDRs, in accordance with national laws and regulations, to help vulnerable countries.
RESILIENCE AND SUSTAINABILITY FUND
We ask the IMF to establish a new Resilience and Sustainability Fund (RST) – in line with its mandate – to provide affordable long-term financing to help low-income countries, small developing states and vulnerable middle-income countries to reduce future risks to balance of payments stability, including those arising from pandemics and climate change.
SOVEREIGN DEBTS
We welcome the progress made under the G20 Debt Service Suspension Initiative (DSSI), which has also been agreed to by the Paris Club. All official bilateral creditors should implement this initiative fully and transparently.
We reiterate the importance of the joint efforts of all actors, including private creditors, to continue working on improving debt transparency.
COVID-19 AND ECONOMIC RECOVERY
We reaffirm our determination to use all available tools for the time necessary to address the adverse consequences of COVID-19, particularly for those most affected, such as women, youth, informal and low-skilled workers, and on women inequalities.
We will strive to help solve COVID-19 bottlenecks and tool shortages in low- and middle-income countries in the coming months, reaffirming our commitment to ensuring safe, equitable, and affordable access to vaccines, treatments. and diagnostics. We recognize the role of immunization against COVID-19 as a global public good.
FINANCIAL INCLUSION
We reaffirm our commitment to improve digital financial inclusion of vulnerable and underserved segments of society, including micro, small and medium-sized enterprises (MSMEs), carrying out the work of the Global Association for Financial Inclusion (GPFI) and applying the G20 2020 Action Plan for Financial Inclusion.
ENVIRONMENTAL PROTECTION
We encourage International Financial Institutions, including Multilateral Development Banks (MDBs), to redouble their efforts to seek alignment with the Paris Agreement within ambitious deadlines, to finance sustainable recovery and transition strategies, Nationally Determined Contributions and long-term development strategies with low greenhouse gas emissions in emerging markets and developing economies, and to establish plans to mobilize private financing, in line with their mandates and internal approval procedures, while continuing to support the achievement of the United Nations 2030 Agenda.
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
