The head of the International Monetary Fund Kristalin Georgiew announced that the IMF would implement Washington's suggestions regarding his policy. Earlier, US finance minister Scott Bessent announced that the IMF and the World Bank must gain the trust of the American administration.
Georgiewa stated that her agency values her opinion USAwhich are the largest shareholder of the IMF, and that she herself accepts the voice of support from the Bessent.
The head of the American Ministry of Finance said on Wednesday that Georgiewa and the head of the World Bank Ajay Bang are “good leaders”, but they must gain the trust of the US President's administration Donald Trumpfocusing the attention of their institutions on their main mission, i.e. issues of macroeconomic stability and economic development.
He added that both of these agencies moved away from their basic tasks because they focused on such matters as climate warming.
Georgiewa about the climate
Georgiewa reacted to these words in Thursday's speech and explained that the IMF does not make sense to strict climate experts, but focuses on issues related to its insulation due to the situation of countries that are threatened by serious problems and need a fund in connection with this.
Bessent, like Georgiev, gave his Wednesday speech in the lobby of the spring session of the IMF and the World Bank. He postulated thorough exchange in both of these institutions, but at the same time emphasized that the US intends to continue to engage in the activities of international economic organizations, “New York Times said.
The daily emphasized that the speech of the Bessent, who also repeated during later talks with journalists that Washington did not intend to withdraw into the IMF and the World Bank, calmed many politicians. There was a conviction that Trump would not maintain their obligations towards these organizations.
“Uncertainty is bad for business”
Last week, Georgiev assessed that the duties introduced by Trump and the trade war they caused would have a negative impact on the global economy and would cause a significant slowdown this year, but they would not lead to recession.
Referring to this assessment, the head of the IMF said on Thursday that countries should “very quickly” solve problems related to customs and trade, because the trade war threatens the global economy.
She announced that she was particularly worried in this context. The situation of countries associated in the Association of Nations of Southeast Asia (ASEAN) and Africa; She added, however, that if global trade is still shrinking, then these countries can focus on regional trade.
Georgiewa also emphasized that “uncertainty is bad for business”, which was a veiled criticism of Trump, whose chaotic policy disturbs entrepreneurs and investors
About the International Monetary Fund
The International Monetary Fund is an international organization related to UN. Almost all countries in the world belong to the IMF, a total of 190 members.
The goal of the IMF is to support economic stability, especially the currency system. The main areas of the IMF activity are supervision and credit assistance.
Source of the main photo: PAP/EPA/Maansi Srivastava