WASHINGTON: An IMF advisory committee has called on global financial institutions, including the World Bank, to work on a multi-pronged program to enhance debt transparency and sustainability, as India sought mitigation of the rising debt vulnerabilities of low income countries.
The International Monetary and Finance Committee (IMFC) also noted that global growth prospects are threatened by increasing trade disputes, geopolitical tensions and low income countries’ heavy debt burden.
In a statement at the end of three days of meetings, the IMFC heeding to the voice of countries like India, the US, Britain and France, called on the IMF and the World Bank to work on a multi-pronged program to enhance debt transparency and sustainability.
“Debt vulnerabilities are rising in many countries, particularly in LIDCs. We call on the IMF and the World Bank Group to work together on a multi-pronged work program to enhance debt transparency and sustainability and address LIDCs debt vulnerabilities,” it said.
On the conclusion of the annual spring meeting of the IMF and the World Bank, the IMFC meeting chaired by South African Governor of Reserve Bank Lesetja Kganyago in a communique urged the IMF to work closely with members to strengthen fiscal frameworks and improve debt management capacity, and to work with debtors and creditors on promoting sustainable lending practices and tackling data gaps.
Welcoming efforts to conduct a rigorous, evenhanded, candid and transparent assessment of excessive global imbalances and exchange rates in the 2018 External Sector Report, the IMFC said it looks forward to the stock-take on capital flow management measures based on the Institutional View.
Supporting the IMF’s collaboration with stakeholders on financial technology, crypto assets and cyber security, the communique called on the IMF to set out a clear process for supporting country authorities in developing their medium-term revenue strategies. PTI
