She touched on the crisis between Russia and Ukraine and the debts of poor countries

Mohammed bin Rashid attends a dialogue session with the Director General of the International Monetary Fund

  • Mohammed bin Rashid and Saud Al Mualla during the session.

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  • Managing Director of the International Monetary Fund: Kristalina Georgieva.

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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, His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority and Supreme Chairman of the Emirates Airline Group, and Sheikh Nahyan bin Mubarak Al Nahyan, Minister of Tolerance and Coexistence 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 Kristalina Georgieva, Director-General of the International Monetary Fund, spoke about the most prominent global developments, including the crisis between Russia and Ukraine, And recovery from “Covid-19”, and the debts of poor countries, and managed by Richard Quest, from “CNN”.

Georgieva said that the economic consequences of the crisis between Russia and Ukraine will extend to different parts of the world, which is still recovering from the effects of the "Covid-19" pandemic.

She revealed that the International Monetary Fund, since the first day, has established a crisis room that allows it to act quickly on developments, noting that "the Fund will not suspend Russia's membership," saying: "This is a major decision that will not be taken at the current stage... There is a need for continued dialogue from for the end of 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 the rule of governance in our work according to the rules, 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."

On the 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 currently provided $2.7 billion in Special Drawing Rights.

She stressed the need for rich member states to contribute by 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.

She said that with the start of recovery from "Covid-19", hopes were placed on increasing growth and controlling inflation, but what is happening is the exact opposite... where global growth is declining due to the Ukrainian crisis, noting that "the Fund is adjusting its policies according to the variables, after what a month witnessed Last October, due to disruptions in supply chains, the bank advised caution in monetary terms of lending.

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 that is changing due to the prolonged pandemic, disruptions in supply chains and the war in Ukraine.

In response to a question about the possibility of writing off the debts of poor countries, she replied: "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."

Kristalina Georgieva:

• “The economic effects of the crisis between Russia and Ukraine will extend to the world while it is still recovering from the effects of (Covid-19).”

• “The Fund has the potential to lend $750 billion, and we need the contribution of member states to provide soft loans.”

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