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International Monetary Fund Imf

All articles tagged with #international monetary fund imf

economics2 years ago•10 min saved

Fixing the Broken System: Tackling the Enormous Debt Problem

Prominent economists and world leaders argue that the current framework established after World War II to safeguard economic growth and stability, with the International Monetary Fund (IMF) and World Bank as its pillars, is failing in its mission. The global financial architecture is outdated and dysfunctional, contributing to an inequitable and unstable global economy. The size and complexity of debt crises have increased, involving China and private creditors, and resolving them has become more challenging. The mismatch between the institution and its mission has become more apparent as new geopolitical conflicts and climate change pose imminent threats. Critics argue that the fixes implemented so far are insufficient, and there is a need for significant reforms to align policies with the current economic landscape.

via The New York Times|

#debt-crisis #economic-reforms #economics

economy2 years ago•2 min saved

Sri Lanka Secures Debt Restructuring Deal with Creditor Nations

Sri Lanka has reportedly reached a debt-restructuring agreement with creditor nations, although an official confirmation is still pending. The heavily indebted country has been trying to restructure its debt since last year after defaulting on its foreign debt in May 2022. The agreement with bilateral lenders comes after a recent deal with the Export-Import Bank of China (EXIM), which will help Sri Lanka clear the first review of an IMF bailout and secure further funding from the Asian Development Bank and the World Bank. However, the country still needs to reach an agreement with bondholders who hold the majority of its international sovereign bonds.

via Reuters|

#creditor-nations #debt-restructuring #economy

environment2 years ago•3 min saved

Record-breaking Fossil Fuel Subsidies Reach $7 Trillion, IMF Reports

Fossil fuels received a record $13 million per minute in subsidies in 2022, totaling $7 trillion, according to the International Monetary Fund (IMF). These subsidies, equivalent to 7% of global GDP, hinder efforts to combat the climate crisis. Explicit subsidies, which lower fuel prices for consumers, doubled in 2022 due to higher energy prices resulting from the conflict in Ukraine. Implicit subsidies, representing the costs of climate change and air pollution, accounted for 80% of the total. The IMF argues that ending these subsidies should be a priority in climate action, as it would help limit global warming, prevent air pollution deaths, and increase government revenues. However, subsidy reform is politically challenging, and coordinated international efforts are needed. The G20 nations, responsible for 80% of global carbon emissions, pledged to phase out inefficient fossil fuel subsidies in 2009 but poured a record $1.4 trillion into them in 2022. Ending subsidies would reduce emissions by 34% by 2030, a significant step towards the necessary 43% reduction to limit global heating to 1.5C.

via The Guardian|

#climate-crisis #environment #fossil-fuels

economics2 years ago•2 min saved

Argentina Turns to China for Financial Support Amid Economic Woes

Argentina plans to use a $7.5 billion disbursement from the International Monetary Fund (IMF) to repay part of the money it borrowed through a currency swap line with China. The country recently used yuan equivalent to cover repayments from an IMF loan to avoid default. With negative foreign exchange reserves, Argentina is expected to repay $1.7 billion to the People's Bank of China this week. The details of the currency swap line between China and Argentina have remained largely secret. The IMF disbursement will also be used to repay loans from the Development Bank of Latin America and Qatar. Argentina's ability to make future IMF payments and tap the swap line again remains uncertain.

via Reuters|

#argentina #china #currency-swap