He also warned that although there is “some encouraging news” regarding the inflation global “remains too high” and anticipated that it “could remain high for longer, requiring further tightening of monetary policy.”
georgieva made this statement at the meeting of Finance Ministers and Central Bank Governors of the G20 which takes place in Gandhinagar, India. For management reasons, the Minister of Economy, Sergio Massa, decided not to participate in this event.
IMF: what Georgieva said about inflation
The director of the G20 assured that the main priority at the global level should be “reducing the inflation in a lasting way” and noted that “while there is progress, the job is not done yet: monetary policy must stay the course.
“A premature celebration may reverse the gains made so far in the disinflation process. Rather, if we stay the course, we can enjoy price stability as a foundation for growth and prosperity,” he added. georgieva.
Regarding the overall situationthe head of the IMF demanded that developed countries comply with the contributions to sustain the credit system of the organization.
“I appeal to the countries of the G20 to restore the primacy of the resources of IMF quotas successfully completing the 16th quota review by the end of this year,” the official demanded.
Along these lines, he stated: “Given that our support to low-income countries has quadrupled in recent years and demand remains high, the IMF urgently needs to replenish subsidy resources in the Trust for Growth and the Fight against Poverty (PRGT)”.
“I call on G20 to close the subsidy gap of the PRGT and put it on a sustainable footing for the future, including by exploring options for using internal IMF resources,” he insisted.
In turn, he stressed that “the most recent instrument of the IMFhe Resilience Trust Fund and Sustainability (RST), has been funded through on-lending SDRs, a breakthrough innovation that transforms a dormant asset of countries into strong firepower positions to support vulnerable countries.”
At some point, Argentina explored the possibility of obtaining new resources through this route. “The G20 has achieved its goal of committing $100 billion to channel SDRs to vulnerable countries. For the IMF, this has mobilized $45 billion for the PRGT and $42 billion for the RST. Let’s work together to increase the firepower of the RST,” Georgieva reiterated.
Source: Ambito
