FM Sitharaman Stresses IMF's Need for Strong Capitalization

By: WE Staff | Thursday, 12 October 2023

Finance Minister Nirmala Sitharaman took centre stage at a high-level roundtable discussion hosted by US Treasury Secretary Janet Yellen on the sidelines of the World Bank-IMF Annual Meetings in Marrakech, Morocco. The focus of the discussion revolved around 'IMF policy priorities and how the institution should support its membership'. Sitharaman used this platform to underscore the crucial necessity for the International Monetary Fund (IMF) to remain well-capitalized as a critical response to future global challenges.

During her speech at the roundtable, Sitharaman rooted into various aspects of IMF policies and mandates, emphasizing the need for a robust, quota-based, and adequately resourced IMF. She drew attention to the importance of the Poverty Reduction and Growth Trust (PRGT) Financing and underscored the significance of IMF governance reforms.

Furthermore, the Finance Minister articulated India's vision during its G20 Presidency, highlighting the centrality of multilateralism in achieving coordinated and consensus-based solutions to the multifaceted global challenges.

Sitharaman accentuated the core role of the IMF in the realm of macroeconomic surveillance and policy guidance. She particularly emphasized the IMF's role in addressing bottlenecks in the debt restructuring process and promoting cooperation on debt-related issues, including its co-chairing of the Global Sovereign Debt Roundtable alongside India and the World Bank.

The Finance Minister's resounding message focused on the critical need for the IMF to remain well-capitalized, relying on quota-based resources, to serve as a cornerstone in the global financial safety net.

Sitharaman also expressed India's support for gender and governance reforms within the IMF Executive Board. She highlighted India's recent legislative action under the leadership of Prime Minister Narendra Modi, where the country enacted the Nari Shakti Vandan or Women's Reservation Law. This law reserves 33 percent of seats in the Parliament and state legislatures for women, signalling India's unwavering commitment to gender equality and women's active participation in governance.

On the sidelines of the high-level discussions, Finance Minister Sitharaman held a meeting with Ilan Goldfajn, President of the Inter-American Development Bank. Their discussions involved an exchange of perspectives on prevailing development challenges and opportunities. The meeting saw the presence of officials from the Government of India and the Inter-American Development Bank.

Sitharaman's active participation and assertive stance in these global discussions reinforce India's position on the world stage and its commitment to tackling complex international issues while championing gender equality and financial stability.