Those strong Countries, that are in a relatively stronger position, should help vulnerable countries especially those under debt distress, International Monetary Fund managing director Kristalina Georgieva said on Thursday.
The International Monetary Fund (IMF) chief said such assistance would be particularly important against the backdrop of high-interest rates and currency depreciation.
Georgieva said at the Boao Forum for Asia that we urgently need faster and more efficient global mechanisms for providing debt treatments to these countries, adding that such mechanisms would significantly benefit both debtors and creditors.
Success would remove one important source of uncertainty to the global picture.”
Georgieva added.
Georgieva also said the IMF greets China’s engagement in the Common Framework program and participation in the new Global Sovereign Debt Roundtable.
The Boao Forum, frequently seen as Asia’s equivalent to the World Economic Forum’s annual meeting in Davos, Switzerland, is being held in the southern Chinese resort island of Hainan until Friday.
Georgieva also said nations need to work together to energize international trade equitably for more people to benefit from globalization, and diversify supply chains based on economic logic.
She said IMF research revealed the long-term cost of trade fragmentation could be as high as 7 percent of the international gross domestic product, and Asia as a highly integrated region would be the most adversely affected by runaway fragmentation.
Governments also need to protect vulnerable people in their own countries who have been especially hit hard in the past three years, Georgieva said, referring to the impact of the COVID-19 pandemic.
This means fiscal policy providing targeted support to those most in need or those most affected by food insecurity or the cost-of-living crisis.”
Georgieva added.
