International Monetary Fund countries agreed this Saturday to a “significant increase” in contributions to the institution’s lending resources until the end of the year, and the Fund’s CEO, Kristalina Georgieva, warned that the conflict between Israel and Gaza is intensifying global economic uncertainty.
In a press conference following a meeting of the IMF’s International Financial and Monetary Committee (IFMC), Managing Director Nadia Calvino did not reveal the terms of the increase in the financing quota, but said it will ensure that the IMF is able to maintain global financial stability.
The final wording of the statement is still being negotiated, according to a source close to the negotiations.
It’s unclear whether the committee would approve a largely U.S.-backed plan that requires countries to contribute new funds in proportion to their current holdings, which would delay any gains for China and other large emerging markets such as Brazil.
Calvino, Spain’s economy minister who is concluding his term as commission president, said there was unanimity on the “central issues.”
Georgieva told a news conference that the severity of the conflict between Israel and Gaza became evident during this week’s meetings of the International Monetary Fund and the World Bank, as the situation evolved from attacks on “innocent civilians” in Israel to “need to find ways to avoid conflict”. loss of civilian life in Gaza”
“I can say that the shock that people felt came during our meetings,” Georgieva said.
According to her, it is still too early to assess the impact of the conflict on the global economy.
“What we see, obviously, is the recognition that this is another source of uncertainty,” he said, adding that much will depend on its scale and duration.
Source: Terra
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