Minister Of Finance, Sri Mulyani: The IMF And World Bank Play An Important Role In Global Debt Management

Finance Minister Sri Mulyani Indrawati. (Photo: Kemenkeu)

JAKARTA - Minister of Finance Sri Mulyani said the international financial institutions have a central role in the global financial governance system. This is considered more relevant in entering the second year of the COVID-19 pandemic.

Nevertheless, there is still an imbalance of economic recovery in some countries in the world. According to her, the economy is projected to experience positive growth while the hard-hit country has a much lower growth projection.

"We hope that the World Bank and the International Monetary Fund (IMF) can step up efforts to support countries around the world, to effectively manage their debt burdens, improve access to vaccines and implement their growth recovery strategies", Sri Mulyani said while speaking at the World Bank Spring Meeting 2021 Development Committee (DC), as reported by the official website, Monday, April 12.

The Minister of Finance added that the pandemic has put undue pressure on public sector finances. The G20, the World Bank, the IMF, and private creditors must work together to ensure a fair burden-sharing scheme to help low-income countries.

"We need greater scrutiny and guidance from the World Bank and the International Monetary Fund to address the growing debt problem and reduce increasing pressure", she said.

Regarding economic recovery, the Minister of Finance welcomed the proposals for resilient and inclusive development as a comprehensive framework for integrating development considerations and tackling climate change.

"I want to underline my hope that the World Bank and the IMF can continue and strengthen their important role as a reliable partner and effective development partner for their member states in times of need", she said.

For information, the Development Committee (DC) is a Ministerial-level forum of the World Bank Group and the International Monetary Fund for the development of intergovernmental consensus on development issues.

The committee was established in 1974 and has 25 members consisting of the Minister of Finance or Development, and who represents the full membership of the World Bank and the International Monetary Fund.