The International Monetary Fund (IMF) is looking for ways to expand donor coordination to middle-income countries such as Sri Lanka, IMF Managing Director Kristalina Georgieva said on Thursday (13).
Speaking during a press briefing, Kristalina Georgieva said the IMF is pressing for a more effective debt resolution mechanism.
She further said the IMF wants the Common Framework to become more predictable with guidelines and able to bring equality of treatment for all creditors, public and private.
“As such, we are also looking for ways in which we can expand that kind of donor coordination to middle-income countries, such as Sri Lanka. It is so important that we do demonstrate we understand the urgency to act, and we understand that acting together makes a difference in the lives of hundreds of millions of people,” the IMF Chief said.
Kristalina Georgieva also pointed out that the World Economic Outlook shows a one in four chance, in other words, a 25 percent chance that global growth could drop to a historic low of 2 percent next year.
The IMF Managing Director said the IMF cut the growth forecast for 2023 to 2.7 percent on Tuesday.
“Across many economies, recession risks are rising. And even when growth remains positive, for hundreds of millions of people, it would feel like a recession because of rising prices and shrinking incomes. On top of it, risks to financial stability are also growing” she warned.
The IMF Chief made the observation during a press briefing held on the IMF’s Global Policy Agenda. (NewsWire)