IMF Managing Director Kristalina Georgieva speaking during the forum, yesterday.
Doha, Qatar: The official announcement between the State of Qatar, represented by the Ministry of Finance and the International Monetary Fund (IMF), titled State of Qatar’s Special Drawing Rights (SDRs) commitment to the IMF, was issued yesterday during the third edition of the Qatar Economic Forum.
The announcement demonstrates Qatar’s leadership role in supporting least developed countries overcome economic shocks and challenges.
Speaking during the event, Minister of Finance H E Ali bin Ahmed Al Kuwari said, “Qatar recognises these rising needs and has continued to deliver its commitment to strengthen multilateral action to address challenges with aim to continue the new global growth story. On this momentous occasion I would like to announce that Qatar is pledging to contribute 20 percent of its SDRs holdings to IMF by supporting that.”
“The global economy faces unique uncertainties including geopolitical tensions, high inflation, increasing debt, vulnerabilities, rise in poverty and rise in equality, slowing growth and tighter financial conditions,” Minister Al Kuwari added.
The Minister noted that the Poverty Reduction and Growth Trust (PRGT) finances are under strain because of substantially stronger demand for the PRGT loans in the post pandemic era and sharply higher interest rates.
“Qatar is keen to contribute to the funds efforts in supporting low-income countries at this critical juncture. Qatar is also keen to assume an active role within the international community to support international efforts to address climate change, pandemic, job creation, more equal opportunities and economic diversifications which are all long-term challenges facing emerging markets and developing countries,” the Minister of Finance noted.
Al Kuwari added, “We look forward to deepening our continual engagement with IMF and continuing to deliver our commitments to support efforts to strengthen the multilateral financial and development infrastructures.”
Speaking to the media IMF Managing Director, Kristalina Georgieva, lauded Qatar’s economy. “I am very grateful to Qatar for the generosity and leadership in supporting vulnerable countries. The pledge made today would allow the IMF to expand concessional lending to low-income countries as well as to expand lending to vulnerable to climate shock countries, so they can be more resilient to floods and droughts and other forms of climate related natural disasters,” she said.
Regarding Qatar’s economy and the country’s successful reforms, Georgieva pointed out that Qatar is a shining example of reforms and strong institutions that lead to diversified growth and creating an economy of future for the people here.
She further said, “Among the GCC countries, Qatar has the strongest non-hydrocarbon sector of the economic growth that shows the diversification that has been pursued over the past years is paying dividends.”
Addressing the event IMF chief said, “It is my great honour to express immense gratitude of IMF on behalf of members that need support to the generosity Qatar has demonstrated with the pledge.”
In response to the announcement IMF chief noted, Qatar has a dynamic and vibrant economy that is doing so well due to the reforms introduced in the country. She also praised the tremendous strength of institutions that have been built because of the leadership in the country.
Georgieva stressed that it is exactly what “we would like to promote in the countries we serve. Since the COVID-19 pandemic, we have been very proactive in helping vulnerable countries and provided financing to 96 countries and have reached the highest level of lending in the history of the IMF.
“For low income countries we have quadrupled our lending but more than the money, we need to help countries build strong institutions and promote reforms that ensure a path to prosperity for their people.”
“I want to assure that not only we will make good use of the money but we will make good use of Qatar’s own experience in promoting reforms,” she added.
