In Multilateral Development Banks (MDBs) such as the World Bank and IMF, as well as other international financial and economic organizations, G20 countries have emphasized the importance of increasing the representation and voice of poor nations in decision-making.
The leaders said, "In that context, we welcome the creation of a 25th chair at the IMF Executive Board to enhance the voice and representation of Sub Saharan Africa," at the G20 South Africa Summit in Johannesburg.
G20 leaders reiterate the vital role MDBs play in promoting development, economic expansion, and poverty alleviation in client nations.
"We applaud the Heads of MDBs Group's first Progress Implementation Report on the G20 MDB Roadmap. We also recognize the potential of the Capital Adequacy Framework (CAF) to assist MDBs in making better use of their current resources, sharing more risk with the private sector, and using new tools to boost lending capacity over the next ten years. We also acknowledge the necessity of the MDBs' ongoing efforts to implement the G20 Roadmap and CAF reforms," it stated.
We are in favor of the IMF's ongoing cooperation with Regional Financing Arrangements (RFA). We anticipate completing this procedure as soon as possible. We have advanced the domestic permissions for our consent to the quota increase under the 16th General Review of Quotas.
It stated, "We recognize the significance of realignment in quota shares to better reflect members' relative positions in the global economy while protecting the quota shares of the poorest members." However, the G20 declaration stated that progress must be made gradually in order to reach an agreement among members on quota and governance reforms.
The leaders of the G20 nations also pledged to carry out the G20 Roadmap for Enhancing Cross-Border Payments in an efficient manner and to take any additional steps required to accomplish its objectives.
It also highlighted how crucial it is for the Financial Stability Board (FSB) and international standard-setting bodies (SSBs) to keep an eye on financial risks and vulnerabilities and to create sound financial standards and recommendations in order to preserve financial stability and strengthen the resilience of the global financial system.
"We support the implementation of the FSB's and other SSBs worldwide regulatory framework in this regard, and we welcome the FSB's thematic peer review on the application of its high level crypto assets and stablecoin recommendations.
It stated that the majority of members acknowledge the significance of tackling financial risks associated with climate change and that these initiatives are crucial for preserving financial stability and encouraging responsible innovation.
Regarding the debt vulnerabilities, it stated that although the likelihood of a systemic debt crisis seems to be largely contained, many low and middle income countries that are at risk must contend with high finance costs, substantial external refinancing requirements, and a substantial outflow of private capital.
According to the report, these debt vulnerabilities may limit their ability to invest in growth and development, address poverty and inequality, and manage their fiscal space, among other things.
"We welcome the recent progress of the Common Framework and note that, five years after its creation, it provided debt treatments to the four countries that had requested it, namely Chad, Zambia, Ghana and Ethiopia," stated the statement.
