Morocco: Sitharaman, US Secy Yellen discuss IMF’s policy priorities

Marrakech [Morocco]: Union Finance Minister Nirmala Sitharaman held discussions with US Treasury Secretary Janet Yellen on the policy priorities of the International Monetary Fund and how the institution should support its membership.

The two met on the sidelines of the ongoing IMF-World Bank Annual meetings in Marrakech, Morocco, the Union Ministry of Finance informed.

In her intervention, Sitharaman spoke about IMF’s mandate and lending policies, a strong, quota-based, and adequately resourced IMF, Poverty Reduction and Growth Trust (PRGT) Financing and IMF Governance reforms.

In her address, she also highlighted the role of IMF in addressing debt restructuring process bottlenecks and fostering cooperation on debt issues, including through co-chairing the Global Sovereign Debt Roundtable (GSDR) with India and the World Bank, according to the Finance Ministry.

The roundtable discussion was hosted by US Treasury Secretary Yellen.

A high-level seminar on “Strengthening the Financial Capacity of MDBs” was also organised by the G20 India Presidency.

Sitharaman drew attention to India’s G20 Presidency’s focus on the importance of multilateralism to move towards coordinated and consensus-based solutions to global challenges and also highlighted that in line with the evolving needs of the membership, the IMF’s primary focus needs to be macroeconomic surveillance and policy guidance.

The participants during the seminar deliberated on various options to enhance multi-lateral development banks (MDBs) financing and how these options can be implemented most effectively across the MDBs.

The Union Finance Minister also underscored the importance of the IMF to remain well-capitalised through quota-based resources to remain central to the global financial safety net.

Expressing India’s support for the gender and governance reforms in the IMF Executive Board, the FM mentioned that under Prime Minister Narendra Modi’s direction, India has recently enacted the Nari Shakti Vandan (Women’s Reservation Law), which reserves 33 per cent seats in the Parliament and State Legislatures for women, the Ministry of Finance on X.

The Union Finance Minister also met Ilan Goldfajn, President of Inter-American Development Bank and the two exchanged views on current development challenges and opportunities.

Union Finance Minister also met Mze Abdou Mohamed Chanfiou, Minister of Finance, Budget and Banking Sector, Comoros, and exchanged views on issues like Digital Public Infrastructure (DPI), development partnership and other areas of mutual cooperation.

Referring to the initiative ‘Voice of Global South’ as envisioned by PM Modi, she said that India is looking forward to the participation of the President of Comoros in the ‘Voice of Global South’ Summit on November 17 as well as the G20 Virtual Summit on November 22 in Comoros’s capacity as Chair of the African Union.

The FM also expressed India’s readiness to share its technical capabilities and knowledge resources for empowering the people of the “Global South” and also stated that the Technical Cooperation Agreement (TCA) on India-Africa Economic Cooperation between the Government of India and the African Development Bank is currently in its final stages.

She also met Ajay Banga, president of World Bank. They discussed several issues related to India’s development priorities and global challenges – in the context of a bigger, better and more effective World Bank, as per the Ministry of Finance.

Highlighting the ‘One Sun, One World, One Grid’ initiative articulated by PM Modi, Sitharaman encouraged the World Bank’s active involvement in taking it forward, according to the Ministry of Finance.

The FM emphasised that India has delivered on its commitments towards Nationally Determined Contributions (NDCs) and this rich experience can be used by the World Bank in its engagement with other countries.

Citing India’s rich and varied development experience, she said India can become a strong partner for Sandboxing the eight global challenge programmes proposed to be taken up by the World Bank.

Welcoming Morocco’s participation through the African Union in the G20, Sitharaman said India has always supported Africa and is privileged to have had the historic opportunity to propose permanent membership of the African Union and also that this will make G20 much more inclusive.

The fourth G20 Finance Ministers and Central Bank Governors (G20FMCBG) and fourth G20 Finance and Central Bank Deputies (G20FCBD) meetings are being held here in Morocco from October 11 to 13 and Sitharaman and Governor of Reserve Bank of India, Shaktikanta Das are co-chairing these meetings, the Ministry of Finance said.