Mohammed bin Rashid attends a dialogue session for the Director-General of the International Monetary Fund within the activities of the World Government Summit

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and His Highness Sheikh Saud bin Rashid Al Mualla, Member of the Supreme Council and Ruler of Umm Al Quwain, in the presence of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, and His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, and His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority and Supreme Chairman of the Emirates Airline Group, and Minister of Tolerance and Coexistence Sheikh Nahyan bin Mubarak Al Nahyan, to A number of sheikhs, ministers and officials attended a main session entitled “Dialogue with the Director-General of the International Monetary Fund” within the activities of the first day of the World Government Summit 2022, in which H.E Kristalina Georgieva, Director-General of the International Monetary Fund, spoke about the most prominent global developments, including the crisis between Russia and Ukraine recovery from covid-19Poor Countries' Debt, managed by CNN's Richard Quest.

Georgieva said that the economic consequences of the crisis between Russia and Ukraine will extend to different parts of the world that is still recovering from the effects of the Covid-19 pandemic, and revealed that the International Monetary Fund, from the first day, established a crisis room that allows it to act quickly on developments, noting that the Fund "He will not suspend Russia's membership," saying, "This is a big decision that will not be taken at the current stage... There is a need for continued dialogue in order to end the war."

She added: "We have a statute for member states that states that if they fulfill their financial and economic obligations, their membership cannot be compromised, and we want governance in our work according to principles, and my great hope is that the war will end, and then things will be better for the people of Ukraine and the world economy."

soft loans

On the International Monetary Fund’s work to provide funds to Ukraine and the affected countries, Georgieva said that the Fund has the ability to lend $750 billion, and that last year it issued Special Drawing Rights, and provided $2.7 billion in Special Drawing Rights now, and stressed the need for rich member countries to contribute to providing Soft loans, emphasizing the need to provide funds without high debt costs in light of the continued rise in interest rates on poor countries.

The Director-General of the International Monetary Fund said that with the start of recovery from Covid 19, hopes were pinned on increasing growth and controlling inflation, but what is happening is the exact opposite, as global growth is declining due to the Ukrainian crisis, noting that the Fund is adjusting its policies according to variables, after what October witnessed With past disruptions in supply chains, the bank advised caution in monetary terms of lending.

Exceeding Fund Expectations

Georgieva expressed her appreciation for the efforts of the decision-makers who succeeded through their policies in exceeding the expectations of the Fund at the beginning of 2020 that the global economy will shrink by 10%, which did not happen thanks to the immediate interaction of central banks and financial authorities, which provided the needs of the economy and provided additional loans with low debt service thanks to the interest cut, but This is changing now due to the prolonged pandemic, disruptions in supply chains and the war in Ukraine.

In response to a question about whether the debts of poor countries should be written off, she answered: "For some countries, a deep restructuring must be done, but other countries may need to redefine the characteristics of the debt and prolong the repayment period. The priority now is to identify the countries that have risks."

A global platform for the future industry

It is worth noting that the World Government Summit constitutes the gathering platform for more than 30 global organizations, and in its exceptional edition this year, it will host more than 4,000 participants from senior government officials, experts and leaders of the private sector, to explore the future of governments in more than 110 dialogue and interactive main sessions.

Since its launch in 2013, the World Government Summit has focused on anticipating future governments and building a better future for humanity, and has contributed to the establishment of a new system of international partnerships based on inspiring and foreseeing future governments.

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