IMF, WB URGED TO BOOST AID TO DEVELOPING NATIONS

FINANCE Secretary Ralph Recto wants the International Monetary Fund and World Bank to increase their support for developing countries worldwide to accelerate a global economic recovery.

"I urge the World Bank, the International Monetary Fund, and other partners to intensify their efforts in assisting developing countries to mitigate and reverse the factors threatening our growth prospects," Recto said during the Spring Ministers and Governors Meeting of the Intergovernmental Group of 24 (G-24) on International Monetary Affairs and Development on Wednesday in Washington, D.C.

Recto, serving as the chairman of the Board of Governors, cautioned that a global economic slowdown will disproportionately impact developing countries, posing serious threats to peace, economic security and prosperity for all.

He emphasized the urgency of taking decisive action to protect our progress, warning that without concerted efforts, developing nations risk falling further behind.

The Finance chief then called for international financial institutions to become more agile and resolute in response to this critical moment.

"The primary concern for emerging markets and developing economies is securing immediate access to short-term liquidity and affordable long-term financing to navigate the turbulent waters ahead," said Recto.

As the provider of crucial financial support to the most vulnerable countries, Recto urged international financial institutions to create innovative and adaptable financing solutions.

He said that these solutions are vital for sustaining productivity, boosting long-term growth opportunities, and building resilience against economic shocks.

Moreover, Recto pointed out the need for these institutions to set more ambitious targets for both concessional and non-concessional funding programs, aligning with the challenges of achieving inclusive and sustainable development by 2030.

He then emphasized the urgency of ambitious replenishment, faster disbursement, and efficient delivery of resources like the International Development Association, which serves as a vital lifeline for developing nations.

"Without improvements to financing conditions in the short term, decades of individual and global efforts to eradicate poverty and inequality, combat climate change, and invest in growth-enhancing infrastructure projects will be put to a halt, if not reversed," Recto said.

Considering the significant challenges facing nations globally, the Group emphasized the critical need to sustain the long-term viability of the Poverty Reduction and Growth Trust.

Additionally, the Group called for prompt action to reallocate Special Drawing Rights from countries with strong Balance of Payments positions toward bolstering resources for Emerging Markets and Developing Economies, as well as Multilateral Development Banks.

2024-04-18T17:53:22Z dg43tfdfdgfd