Debt and climate top priorities on IMF, WB spring meetings agenda

Finance ministers and central bankers from around the world are set to descend on Washington for the International Monetary Fund and World Bank 2024 Spring Meetings this week as Middle East tensions, weak productivity and debt distress cast uncertainty over the global economic outlook. Previewing the focus of this year's events, IMF Managing Director Kristalina Georgieva said the world faces a disappointing stretch unless leaders address policies that invigorate growth. Unless such action is taken, Ms Georgieva said this decade could be remembered as the “Tepid Twenties”.

By Newsroom Last updated Apr 16, 2024

By Victor MUJIDU

The International Monetary Fund (IMF) and the World Bank are set to convene their annual Spring Meetings, where they will focus on addressing two key global challenges – climate change and debt sustainability.

The meetings, which will take place virtually from April 5-11, will bring together finance ministers, central bank governors, and other top officials from around the world to discuss ways to combat climate change and ensure debt sustainability in the wake of the COVID-19 pandemic.

Climate change is increasingly becoming a top priority for the IMF and World Bank, as the impacts of global warming become more severe and widespread. Both institutions have committed to supporting countries in their efforts to transition to a low-carbon economy and adapt to the effects of climate change.

Debt sustainability is also a critical issue, particularly in the wake of the economic downturn caused by the pandemic. Many low and middle-income countries are struggling with high levels of debt, which can hinder their ability to recover and invest in sustainable development.

During the meetings, participants will discuss ways to address these challenges, including through increased financial support, debt relief, and reforms to promote sustainable growth and development.

Overall, the IMF and World Bank Spring Meetings are expected to provide a platform for global leaders to come together and work towards a more resilient and sustainable future for all.

Debt levels among low-income countries like Kenya, have soared since the central banks raised interest rates in response to rising inflation, and the US is expected to push for its vision to address global debt.

The IMF, World Bank, bilateral and private creditors, as well as borrowing countries, are due to meet for talks during the global sovereign debt round-table on Wednesday.

With recent data showing the Federal Reserve Board is unlikely to raise rates soon, it opens the door for the European Central Bank to be the first of advanced economies to dial back on policy.