Finance Secretary Ralph Recto, who currently chairs the Intergovernmental Group of Twenty-Four (G-24) Board of Governors, is advocating for significant reforms aimed at enhancing the roles of the International Monetary Fund (IMF) and the World Bank Group (WBG) in supporting developing nations.
In a statement released on Wednesday, the Department of Finance (DOF) reported that Recto championed four key reforms during a high-level meeting of finance ministers and governors at the IMF headquarters in Washington, D.C., on October 22. The Philippines is serving as the G-24 Chair for the 2023-2024 term.
“We continue to call for a more agile and resolute IMF and World Bank. We need you to not only keep pace with the changing times but also lead with foresight and innovation,” Recto said. “We need heightened development cooperation, scale-up support, and more responsive solutions to navigate the headwinds and foster peace, stability, and prosperity for all.”
Among the reforms proposed was the establishment of a new liquidity provision mechanism by the IMF to assist countries with sound economic fundamentals during liquidity crises.
Recto also urged the WBG to set more ambitious targets for its concessional and non-concessional financing windows, which are critical for achieving inclusive and sustainable development by 2030.
The Finance Secretary also called for reforms to the Sovereign Debt Resolution Framework, highlighting the need for comprehensive and timely debt relief measures that address the urgent requirements of vulnerable economies.
He stressed that governance and institutional reforms within the Bretton Woods System should be expedited to amplify the voices and representation of developing countries.
“Without bold reforms and decisive actions, years of progress in combatting poverty and inequality, addressing climate change, and investing in growth-oriented initiatives could be jeopardized,” Recto cautioned. “We rely on this meeting to foster unprecedented multilateral cooperation.”
Established in 1971, the G-24 plays a pivotal role in coordinating the interests of developing countries in international monetary and development finance discussions.
