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IMF rates, Ukraine war and environmental debt

IMF rates, Ukraine war and environmental debt

In addition, he referred to the inability of some countries to access climate and sustainable financing: “Sustainable financing presents challenges especially for developing countries. Many countries do not have access to grants and climate finance under favorable conditions to invest in mitigation, adaptation and energy transition”.

SERGIO MASSA CONFERENCE.mp4

Financing asymmetries

The current Minister of Economy focused part of his speech on the financing differences between the different countries: “The pre-existing asymmetries in financing conditions between developing and advanced economies have been exacerbated by the tightening of interest rates in many advanced economies.

The increase in sources for investment in social and sustainable infrastructure is, according to Massa, a “key factor” to achieve the objectives of economic recovery, competitiveness and response to structural challenges such as climate change, urbanization and digitization.

In this sense, he highlighted the role of Multilateral Credit Banks, but called to “discuss other financing alternatives” and also “provide financial relief to countries that need it.”

In turn, he defined Argentina as an “environmental creditor”: “We have at this table countries rich in economic-financial resources and, on the other, countries rich in ecosystem resources. Our country is a financial debtor but an environmental creditor. The natural heritage and biodiversity of our countries serves humanity, which makes us unrecognized creditors in the face of financial creditors”.

Massa G20.jpeg

Another point revolved around the surcharge policy established by the International Monetary Fund, that is, the extra interest that the organization charges debtor countries. who take a loan above what is allowed. It is regressive, because it falls on the countries with the greatest financing needs; pro-cyclical, because it makes economic recovery and repayment capacity even more difficult; and opaque, because countries rarely know they will have to pay surcharges,” he noted.

At the end of his speech, he called for “the same countries that in this area demand that we put the seriousness of the damage of the war on the agenda, give their directors a mandate in multilateral organizations so that those of us who were economic victims of this damage can be heard in those forums”.

Massa’s schedule

In addition to his presence at the G20 sessions on International Financial Architecture, Sustainable Finance and Infrastructure; and on the Financial Sector and Financial Inclusion, Massa’s agenda includes a meeting this Friday with his French counterparts, Bruno Le Maireand from Brazil, Fernando Haddad, as part of his trip to India.

As reported by the Ministry of Economy, he will also participate in a third meeting with the World Bank Managing Director of Operations, Axel Van Trotsenburg.

Source: Ambito

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