News and more

Keep Updated On The Progress

  • Wednesday, 23 October 2024

In the Presence of the IMF Managing Director: Minister of Planning and Economic Development Delivers Egypt’s Statement at the G24 Ministerial Meetings at the IMF and World Bank Annual Meetings

● "Al-Mashat": The need to unify the efforts of international institutions to create a more just global financial system.

● The challenges facing developing countries require innovative solutions tailored to the circumstances of each country.

● International institutions are required to enhance their cooperation with member states to boost growth and employment rates.

● Intensifying the World Bank's efforts to support development in developing countries; the Guarantees Platform is a step in the right direction.

● Food security is a top priority for countries worldwide.

● Addressing climate crises requires a more balanced approach between adaptation and mitigation investments.

● We appreciate the G24's call for strengthening the monetary system to enhance the resilience of the global economy and the necessity for a comprehensive review of IMF procedures and policies.

● The G24 welcomes the World Bank's reform steps and calls for expanding the provision of projects’ studies preparation grants.

● The concluding statement welcomes the IMF's decision to reduce financing costs and calls for further comprehensive reforms.

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, delivered Egypt’s statement at the G24 ministerial meetings. This is held as part of the annual meetings of the International Monetary Fund (IMF) and the World Bank Group in Washington, D.C., from October 21 to 26, 2024, with the presence of Ms. Kristalina Georgieva, IMF’s Managing Director, Mr. Axel van Trotsenburg, World Bank’s Senior Managing Director for Development Policy and Partnerships, and representatives from member countries.

In her speech, H.E. Dr. Al-Mashat emphasized that food security is a top priority, closely linked to climate adaptation and water availability. H.E. stressed the importance of adopting a more balanced approach, with equal resource allocation for both climate adaptation and mitigation efforts, aligning with national needs and essential priorities for safeguarding food supplies and ensuring water resource availability.

H.E. Minister Al-Mashat highlighted that the debt crisis and illicit financial flows require urgent attention, noting that while current global efforts primarily focus on financial reforms and debt transparency, it is crucial to recognize the diverse financial challenges faced by different countries.

The minister pointed out the urgent need for tailored solutions to address the unique challenges facing middle-income, low-income, and heavily indebted countries. She underscored that varying economic structures and financial environments necessitate customized strategies that consider each country's specific needs and circumstances, affirming the necessity of adopting innovative approaches to ensure financial stability and sustainable development.

H.E. Dr. Al-Mashat noted that in light of global tightening policies, international institutions must collaborate with member states to enhance growth and employment policies to support development efforts and to advance economies.

H.E. Minister Al-Mashat also emphasized the importance of the World Bank improving access to resources and enhancing current efforts to support its members. There should be greater focus on improving partnerships between the World Bank Group and other multilateral institutions in joint efforts, as partnerships are foundational to effective development. H.E. indicated the need to strengthen cooperation with the World Bank Group not only among other development banks but also with the World Trade Organization, the United Nations Conference on Trade and Development (UNCTAD), and other specialized UN agencies to play a pivotal role in enhancing trade policies and creating a more equitable and efficient global trading system.

H.E. Minister Al-Mashat noted that the challenges facing developing countries require innovative solutions that consider each nation's circumstances. H.E. also commended the G24's call to strengthen the monetary system to enhance global economic resilience and the necessity for a comprehensive review of IMF procedures and policies.

In conclusion, H.E. Dr. Al-Mashat affirmed that the partnership with the World Bank has been a catalyst for achieving significant developmental achievements. H.E. praised the inclusive activities of the World Bank Group initiative, which represents the single guarantee platform of the Multilateral Investment Guarantee Agency, stating that these initiatives are commendable steps toward increasing the impact of development efforts and creating more successful partnerships with the World Bank, aimed at simplifying product offerings and maximizing the limited capital available for developmental work in emerging markets and developing economies.

The G24 issued a concluding statement expressing concern about humanitarian crises and conflicts in many regions of the world, threatening global growth rates. The statement noted that emerging and developing markets face significant challenges amid rising interest rates, high debt levels, and servicing costs, which narrow fiscal space. Therefore, the IMF is called upon to fulfill its role in strengthening the monetary system, enhancing global stability, and increasing the resilience of the global economy by supporting member states.

The group's statement welcomed the review of IMF procedures and policies, incorporating emerging challenges such as climate risks and domestic public debt into the review of the sustainability framework for low-income countries. The group urged the IMF to implement further reforms to achieve a greater reduction in surcharges and lower interest rates, as well as welcomed reforms of the Growth and Poverty Reduction Trust Fund to increase resources available for concessional financing.

In this context, the group welcomed the implementation of the World Bank Group’s roadmap for development through the launch of the guarantees platform and intensified efforts to mobilize capital to attract additional resources to meet the development needs of member countries. They noted that the establishment of the grant facility for project preparation will enhance the institutional capacity of member countries in project preparation. Additionally, the replenishment of resources for the International Development Association (IDA) is a crucial factor in supporting low-income countries and encouraging financial stability.