Munawar urges IMF, World Bank to aid indebted nations

Governor of Maldives Monetary Authority (MMA), Ahmed Munawar, on Friday called on the International Monetary Fund (IMF), the World Bank, and multilateral development banks (MDBs) to adopt stronger measures to support heavily indebted nations.

Addressing the 2024 Plenary of the Boards of Governors of the IMF and World Bank, Munawar highlighted the critical challenges facing emerging markets and developing economies.

Munawar emphasised the urgency of addressing debt sustainability issues, noting that over two-thirds of emerging markets and developing economies are at high risk of debt distress.

“The IMF, World Bank, and MDBs should take bold steps to support countries in debt distress,” Munawar stated.

He also suggested the creation of innovative financial tools, such as debt-for-climate swaps, which could allow debt relief in exchange for climate adaptation investments.

Munawar acknowledged the importance of the Global Sovereign Debt Roundtable but stressed that more action is needed. He urged the international community to ensure that debt sustainability analysis considers the unique circumstances of small island developing states (SIDS) like the Maldives. He noted that the ongoing review of the Debt Sustainability Framework for Low-Income Countries should address the specific needs of SIDS.

The governor also addressed the broader challenges of climate change and structural reforms.

On climate change, he called for easier and affordable climate finance, stating, “Small Island Developing States like the Maldives call on international financial institutions to provide easier and affordable climate finance for adaptation and mitigation on the principles of a just energy transition.”

Munawar emphasised the importance of structural reforms, urging the Bretton Woods Institutions to prioritise job creation, equal opportunities, economic diversification, and the impact of refugee flows. He stressed that reforms should be socially acceptable and ensure widespread benefits.

Munawar's remarks highlighted the ongoing initiatives by the IMF and World Bank to support member countries, such as the completion of the 16th General Review of Quotas and the discussions on quota realignment. He reiterated the significance of providing adequate access and representation to countries in need of MDB support, as well as ensuring fair treatment across all members.

Reflecting on the discussions held during the meetings, Munawar emphasised the importance of collective action in addressing the world’s challenges. He concluded, “Collective action is the antidote to an increasingly fragmented world,” urging his fellow governors to champion cooperation and inclusivity as they plan for the future of the Bretton Woods Institutions.