Newscasts - World Bank's Banga speaks at IMF-World Bank spring meeting in Washington

enCore Energy

18/04/2024 14:48

Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_l75jwhs9&referenceId=1_l75jwhs9&pageId=Newscasts
Source: 'Reuters - Business videos'

Description: World financial leaders gather for the IMF-World Bank Spring
Meetings
Short Link: https://refini.tv/3U3P2dR

Video Transcript:

>> Ukrainian authorities that funding would be there. And I was very pleased
to listen to statements yesterday at the roundtable on Ukraine. The support
for Ukraine remains steady. It is firm. You are all aware of the EU 50 billion
euros. The US administration is pursuing in Congress support from Ukraine many
other countries, Japan, Canada, UK are stepping up South Korea. The list is
long. You also ask, would the needs of Ukraine grow because of the horrific
bombing of critical infrastructure. At this point, we assess the needs for
this year at 42 billion. We have confidence that these needs would be met. Of
course, we will have to continue to carefully monitor conditions in the
country. But let me say this It is the best way to deal with the problem is
for the problem, the war to go away. The war in Gaza, the less of this we have
as human race, the better. Looking at the women in the audience, the more
women we have in position of authority, the better chance we have for peace.
>> Let me go to I'll take the gentleman at the very end of the first row,
please. >> Thank you. My name is Avantul from the Zambia Dairy Meal. Zambia
successful restructured dates date. So what does what interventions does the
IMF wish to see to enable that the country does not get back into distress,
bearing in mind the mounting pressures to raise about one billon dollars for
humanitarian aid on the people which are affected by the droughts. >> Let me
start by congratulating Zambia for successfully completing very complicated
negotiations on that restructuring with both the official and the private
sector creditors, Bravo. And very timely because as you indicated in your
question, Zambia is experiencing a very dramatic drought. It is affecting food
security. It is affecting electricity production, and we all know how
shortages of electricity supply of energy supply overall affect the economy. I
have had many opportunities to meet with the Minister of Finance with the
president of Zambia. I visited the country. It is a country with enormous
potential. It has very fertile soil. It has rich natural resources. It is one
of the not many countries in Africa with relatively small population, 17
million people on a large territory, and it has a determined leadership to
pursue reforms. >> So I am a bit about Zambia. I think we will see increase in
investments. We also will continue to work with Zambia on economic reforms. We
have done something very important. We did a governance assessment as a
foundation for anti corruption measures because as we all know, one of the
problems in resource rich countries is the cancer of corruption. So removing
this cancer is a very important factor to attract financing, and from what we
can see, investors are coming to Zambia. Also, the country has taken a very
important decision to invest in its people. Making education free and
accessible. I went to a school 80 kids in a small room, four per desk, four
per textbook. But so eager to learn, so motivated to contribute to the
country. >> And if I ever need a lift of the depressing news you guys deliver,
I'm going to go to Zambia >> Okay. Let's go here. Third row woman in the
yellow jacket. >> Hello. Anna Rodriguez, Colombian newspaper. Considering the
risks of a division of the world in blocks, how will that affect Latin America
and what precaution has the IMF taken? Thank you. >> Thank you for your
question. Let's start with where Latin America is. The region has faced
problems in reaching dynamic growth, and in fact, Latin America is growth in
Latin America is below the average global growth. Indeed, geoeconomic
fragmentation is a negative factor for everybody, including for Latin America
with some caveats. When you look at Latin America, Mexico, actually benefits
from fragmentation because it has become an entry point into the United States
for goods that otherwise might have come from point A to point B without going
to Mexico. So there is this element of lengthening supply chains that we are
seeing more broadly and we see some of it in Latin America. So what are the
opportunities for Latin America? Well, first to improve what has not worked so
greatly in the past. It is in the area of macroeconomic policies, in some
countries being too generous in terms of spending, in other countries being
too restrictive, get that fiscal monetary financial sector policies in the
best possible shape you can. And we see that countries I mean look at
Argentina, country that has been for a long time, perceived as a logger from a
reform standpoint of view. >> Now is moving very rapidly in tightening the
fiscal spending, getting the ability of private investment to find a better
return. Inflation in Argentina is going down a little faster than we initially
expected. We have I want to actually sting a praise also to Latin America, and
it is in the following. After the global financial crisis, countries have
taken to heart getting their monetary policy in order. Many countries in Latin
America were faster in tackling inflation than the rest of the world. Now they
can start cutting rates. So it's a complex region. There are different
stories. But by and large, I think Latin America can go with more effort on
the policy front, Latin America can go up and do much better. >> There we go.
Let's go back to the seator. I'll take the woman in the front row in the pink,
please. >> Thank you, Julie. Thank you, miss Gergeva for taking my question.
I'm Nora Mash from a Shark business with Bloomberg? So in the Mina region, the
economic cycle is quite different than it is globally. And with rising
inflation, again, it's burdening everyone across the globe, especially with
the rise in oil prices and commodity prices. Now, my question is, how can the
different countries in our region, both oil and non oil producing countries
deal with the current contractionary monetary policy with the current strong
dollar that is burdening the highly indebted countries? And how can the IMF
support the countries affected by the current Gaza war and the war in South
Lebanon as well? Thank you. >> Thank you for bringing in focus the Middle East
that has indeed been on the receiving end of more turbulence since October.
What we recognize is that this impact of the war is indeed affecting the
Middle East. We actually at the time when we have upgraded slightly global
projections from 3.1-3.2%, we have downgraded our projections for growth in
the Middle East by 0.7%. And that is primarily the result of that uncertainty.
What we see is the Most severe impact is felt where the epicenter of the war,
Gaza, in particular, also West Bank, Gaza economy is wiped out, more than 80%
gone, but also the West Bank is severely impacted. There is some impact on the
neighborhood. In the following way, most severe on Lebanon, somewhat less on
other countries. I would say Jordan has shown remarkable resilience, and so is
Egypt. In both cases, in the case of you ask what the IMF can do. In both
cases in Jordan and in Egypt, we have programs in Jordan, $1.2 billion program
that is anchored in Jordan's on reform plans. It does provide a strong buffer
for Jordan, and as a result, the impact of the war is genuinely minimal. In
Egypt, we had a program, $3 billion program. We have done something that is
rare. We have augmented the program by five billion. It is now $8 billion
program. Primarily because of the severity of the regional shock. When we look
beyond those, I just want to bring attention to two countries that should get
more attention than they currently do. Sudan and Yemen. Sudan is in the
situation is terrible. So is in Yemen, what I want to stress is then when we
have the highly visible wars, like the one in Ukraine, like the one in Gaza,
Israel Gaza, The overshadow the pain and suffering that is happening in other
places. But I rest assured for us at the fund, all members are benefiting from
our support and our attention as difficult as conditions may be. And if I can
go back to Latin America, I was searching for the growth number for Latin
America in my brain. My brain set ask Julie for this little sheet of paper. So
in Latin America, Caribbean growth last year, 2.3%, I slipped to 2%. This
year, it is going to improve marginary to 2.5% in 2025. As you can see, way
below the global average. So countries are doing okay, but not great. >> I'm
afraid we have time for just one more question. So I'm going to go back to the
center a woman here in the center in the plaid jacket right by the camera. And
this will be our last question. >> Thank you. Thank you for taking my question
Crystal Hoy Barbados Carbine Broadcast incorporation? You mentioned the need
to address the climate crisis. And while the resilience and sustainability
trust is a step forward to qualify for RSD financing, eligible countries have
to be in concurrent on track financing or non financing IMF supported program.
However, such a requirement restricts members access to the RSD. The majority
of the vulnerable, climate vulnerable countries are not in the IMF program. Is
there consideration to either remove that as a requirement to eliminate it?
And why must it be tied to a program? Thank you. >> So yes, sorry, let me
answer in this way. We are going to review the performance of the RST, and
then should there be agreement on adjust adjustments will be made. We are not
so sure that removing the requirement for a current program at this point
would be justified. And let me explain why. Two reasons. One, because for us
to help countries integrate climate in their macropolicies, it is helpful to
have active and intense engagement on micropolicies overall. So when we pluck
recommendations on climate policies, be it mitigation or adaptation or
transition, we do it in a context of intense engagement with the country and
that makes our job likely to be more impactful. Two, right now, we have many
programs, both financing and non financial programs, and more countries are
coming to us. Sometimes they don't need money, but they do want to use the
fund as an anchor for their macro policies. Most recently, for example, a
country in not Africa, in the Middle East, Iraq said we would like to have a
non financial arrangement with the fund because we would like to benefit from
that anchoring that you offer. We have approved 18 programs so far. We have
about 30 countries that have expressed interest. These are countries with
financial and non financial programs and our ability to respond on our
financial capacity is already being stretched. So to help the countries the
best in my hearts of heart, I think it is more likely to be effective when we
have the more intensive tight engagement as we currently have. This being said
as we move forward and we build knowledge and expertise in this area. It might
become less important to have that close engagement as one of the
prerequisites for successful RST program. By the way, since you're from
Africa, which country? Oh, you're from the Caribbean. Okay. I love the
Caribbean. You guys are. The Caribbean holds one of the most successful IMF
programs ever. >> Yes. >> Barbados. Yes, Jamaica. They are both countries that
have non financial arrangements. They both say they're very happy to have
these non financial arrangements because what it does for them gives them more
attention from the fund more access to expertise. So that works. But the short
and long is that we have something that works. We got very quickly to a very
strong portfolio of programs. Let's keep it going. And of course we will
revisit. We will assess and if there is a need for change or conditions for
change, I guarantee you a change will be made. >> [inaudible 00:19:28]. >> I'm
afraid we're going to have to. >> Let me say Africa. You're asking about
Africa. So here is. >> [inaudible 00:19:38]. >> No. >> People are saying no,
because it would be unfair. Sorry. >> I think we will need to wrap up now. We
will have another opportunity tomorrow. >> Come tomorrow. >> Tomorrow to
discuss with the MD. We will have another opportunity tomorrow. >> [inaudible
00:19:54]. >> Come tomorrow, because then people would say says some words
about this and about that, and it would not be fair. Come tomorrow. We have
another press conference, second bite of the apple. The apple would be right
here. Please come. >> So with this, I am going to conclude the press briefing.
Thank you, managing director for joining us. >> Thank you, everybody. >> The
transcript will be available later today on IMF data work, and I invite you to
join us for the IMFC press conference tomorrow. >> Thank you