By zainab.joaque@awokonewspaper.sl
Washington DC, USA – Finance Ministers and Central Bank Governors from the Group of Twenty-Four (G24) countries convened in Washington DC, issuing a call for a range of measures to bolster financing for developing countries.
In their Communique released during the Spring Meetings of the International Monetary Fund (IMF) and the World Bank, G24 members acknowledged improvements in the global economic landscape but emphasized lingering uncertainties. They highlighted challenges such as reduced access to finance, tight external financing conditions, high debt levels, and inflation affecting many nations.
Following their deliberations, the group advocated for several key reforms, including:
Reforming IMF short-term financing instruments,
Increasing concessional financing to low-income countries,
Reviewing downward the IMF’s charges and surcharges,
Enhancing the channeling of Special Drawing Rights (SDR) from donor countries to countries in need.
Members believe these recommendations will furnish additional financing avenues to help countries weather shocks and prioritize investments in climate action and sustainable development.
Regarding reforms within the Bretton Woods Institutions, G24 members acknowledged the equitable increase in the IMF’s quota. They also anticipated greater representation and voice for developing countries in the upcoming 2025 shareholder review of the World Bank.
Highlighting concerns about escalating public debt levels, especially in developing countries, the group stressed the importance of debt resolution mechanisms.
On the trade front, G24 members expressed apprehension about the surge in protectionist policies, particularly from major economies, which could undermine multilateralism and economic growth. They urged the Bretton Woods Institutions to support reforms aimed at strengthening the multilateral trade system. ZIJ/17/4/2024