Washington DC - World leaders close a week of talks on the global economy amidst grim economic forecasts about the Middle East war impacts on higher food and fuel prices, supply disruptions and less access to aid.
"Discussions focused on how the Middle East war negatively impacts debt, trade, poverty, financial stability and food and fuel prices,” said Eric LeCompte, the Executive Director of Jubilee USA Network. “The mood is somber as we leave the meetings as repetitive economic shocks impact the economy.”
The IMF expects about twenty countries may need new programs or expansions of their existing ones as a result of the war. The World Bank announced preparations to disburse up to an additional $100 billion in the next 15 months – over 40 per cent more than the bank did for pandemic response.
"We are concerned that countries with high debts are not getting enough relief to withstand another crisis,” noted LeCompte.
African countries spend 31% of their revenue servicing external debts. The Global Sovereign Debt Roundtable, a group of some creditors and debtors, chaired by the IMF, the World Bank and the G20 Presidency – this year held by the US – issued updates to its guidance on how to run debt restructurings. It also released a manual that assists countries to carry out financial operations that reduce their debt payments.
"Improving how countries resolve debt crisis remains an IMF priority, as members welcomed changes to make debt restructurings faster and more transparent,” commented LeCompte. “It's clear the G20 finance ministers remain committed to the consensus agenda on improving debt policies.”
Countries holding debt launched a Borrowers’ Platform that will serve as a forum for sharing experience and knowledge on debt management, transparency, debt crises prevention and response. The platform enacts a commitment from a United Nations global financing conference held in Seville, Spain, last year.
“As borrowers come together to address their crises, these efforts will also help stabilize the too high food and fuel prices in the global economy,” stated LeCompte.
Continuing to roll out its focus on jobs, the World Bank, alongside ten other development banks, launched an initiative to better keep track of how their projects create productive, better-paid and more secure jobs in recipient countries.
“Several world leaders expressed concern that the worsening economy would further cut jobs," shared LeCompte. “Africa is unprepared to welcome hundreds of millions of people joining their labor force in the coming decades.”
Policymakers welcomed World Bank work on its strategies for small states and for fragile and conflict-affected countries.
Read Jubilee USA's statement on the IMFC meeting here.
Read Jubilee USA's statement on the G20 ministerial meeting here.
Read Jubilee USA's press release on the WEO and GFSR here.
Read Jubilee USA's statement on the IMF Global Financial Stability report here.
Read Jubilee USA's statement on the IMF World Economic Outlook report here.
Read Jubilee USA's press release on IMF chief Kristalina Georgieva's curtain-raiser speech here.
Read more about Jubilee's Spring Meeting events here.
Jubilee USA Network is an alliance of more than 75 US organizations and 750 faith communities working with 50 Jubilee global partners. Jubilee USA builds an economy that serves, protects and promotes the participation of the most vulnerable. Jubilee USA wins critical global financial reforms and won more than $130 billion in debt relief to benefit the world's poorest people. www.jubileeusa.org
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