Yellen says she will press for IMF, World Bank resources at G-20 summit

NEW DELHI - US Treasury Secretary Janet Yellen said on Friday she will work at

the Group of 20 (G-20) summit in India

to build support to increase lending resources for the International Monetary Fund (IMF) and the World Bank, to help member countries deal with multiple global challenges, including new IMF quota resources.

Dr Yellen said in prepared remarks at a news conference in New Delhi that she will seek to build G-20 support for an “equi-proportional” increase in IMF quota funds paid in by member countries, which would increase IMF lending resources, but not immediately change its shareholding structure.

On Thursday, Treasury Undersecretary Jay Shambaugh said in Washington that an IMF quota increase that keeps voting power unchanged would speed more resources to countries under financial stress, while IMF shareholders could take more time to work out a complicated new shareholding formula that gives greater weight to dynamic emerging market economies such as India, China and Brazil.

Dr Yellen also said the United States has asked the US Congress for permission to lend US$21 billion (S$29 billion) to IMF trust funds, including one for the poorest countries, which “desperately needs more resources”.

Dr Yellen highlighted progress on efforts over the past year by the World Bank and other multilateral development banks to vastly expand lending resources and help tackle climate change, pandemics and other global crises.

Near-term balance sheet changes under consideration could unlock an additional US$200 billion over the next decade, she said. More resources could come from medium-term steps recommended by a G-20 capital adequacy review, including the use of callable capital that is pledged, but not paid-in, to back lending.

“Those are crucial additional resources for reducing poverty, advancing global health security and combating climate change,” Dr Yellen said.

She said she will bring up debt relief for poorer countries, a topic she highlights at every international meeting, particularly where the world’s largest bilateral lender, China, is present.

“We continue to support efforts to provide predictable, orderly and timely debt relief to countries, including under the (G-20) Common Framework for Debt Treatment, where progress has been too slow,” Dr Yellen added.

The US Treasury chief also said she will work to strengthen international support for Ukraine at the G-20 gathering, saying it was “critical that we continue to provide timely economic assistance” through such measures as the IMF’s US$15.5 billion Ukraine loan programme and the European Union’s proposed €50 billion (S$73 billion) support package through 2027.

Due to the need to counteract food insecurity prompted by Russia’s withdrawal from a Black Sea grain deal, Dr Yellen called for support for the G-20’s Global Agriculture and Food Security programme and the United Nations’ International Fund for Agricultural Development. REUTERS