IMF members meeting in Bangkok called for more support for countries facing short-term funding strains caused by war spillovers and high energy prices, according to Reuters. The group also said risks to the global economy remain tilted to the downside.
The statement followed the 54th meeting of the International Monetary and Financial Committee, held Oct. 16–17. The IMF describes the IMFC as the body that advises its Board of Governors on the international monetary and financial system and generally operates by consensus.
Wars, trade tensions and debt raise the pressure
The chair's statement warned that escalating conflicts and trade tensions could disrupt critical trade routes, intensify commodity-price pressures and worsen energy and food security. It also said higher bond yields in major economies could spill over to heavily indebted countries and deepen financial vulnerabilities.
Members agreed to support countries undertaking reforms and addressing debt vulnerabilities, with particular attention to low-income countries, vulnerable middle-income countries and states affected by conflict. The statement encouraged more backing for countries with sustainable debt and strong reform plans that are nevertheless facing short-term financing problems. Reuters reported that several members pledged support for the IMF's Poverty Reduction and Growth Trust.
