IMF Reviews Countries, including Argentina, Egypt, Pakistan, with Repeated Programmes: Georgieva

International Monetary Fund Managing Director Kristalina Georgieva confirmed that the Fund is reviewing its approach to designing loan programs, particularly with countries that frequently resort to it, such as Pakistan, Argentina, and Egypt, according to Reuters.

Georgieva explained in statements on Tuesday that the Fund is not only urging countries to "get their houses in order," but is also evaluating its internal mechanisms, including the terms and duration of financing programs provided to countries.

She emphasized that the top priority for the global economy currently is addressing trade tensions, while affirming that the IMF seeks to enhance the effectiveness of its programs by focusing on structural reforms that support growth and give a greater role to the private sector.

During the press conference on the World Economic Outlook report, the Fund indicated that the Egyptian economy is expected to achieve a growth rate of 3.8% by the end of the current fiscal year 2024-2025, and is expected to rise to 4.3% in the next fiscal year 2025-2026.

IMF Pledges to Strengthen Technical Support to African Countries to Address Debt Burdens

The Managing Director of the IMF also confirmed that a number of African and other countries have called on the Fund to provide further technical support to help them deal with high debt levels, during a meeting that lasted an hour and a half and was hosted by the Bretton Woods Group.

In a joint statement with Hervé Ndoba, Minister of Finance and Budget of the Central African Republic and Chair of the African Group, Georgieva warned that the continent faces the risk of additional shocks that could derail progress made in reducing inflation, stabilizing public debt, and reducing external imbalances.

The statement indicated that economic growth in Africa continues to show some resilience despite multiple shocks, but sudden shifts in the global economic environment have weakened momentum, with the continent's growth forecast for 2025 being lowered by 0.3 percentage points to 3.9%.

The statement emphasized the consensus between African leaders and the IMF on the importance of achieving economic and financial stability in parallel with achieving development goals, with a focus on domestic reforms that support fiscal sustainability by improving revenues and spending efficiency.

The statement affirmed the Fund's commitment to continuing close cooperation with its member countries to help them overcome complex global economic challenges, noting that the creation of the 25th seat on the Executive Board, allocated to Sub-Saharan Africa, strengthens the continent's voice within the Fund.

These statements come at a time of increasing pressure on the Fund to review its policies, especially with some countries repeatedly relying on its programs without achieving sustainable development outcomes.

Georgieva said that the Fund will review its role and how it cooperates with other elements of the global financial safety net.

The IMF Managing Director added, "The new global policy agenda will place greater emphasis on pro-growth structural reforms and put the private sector in the driver's seat."

She stressed the need for the IMF to be "more effective and forthright in debt restructuring." She said, "There is still a lot of unfinished work on debt transparency." Georgieva warned that vulnerable low- and middle-income countries have limited policy space amid the turmoil facing the global economy.

The IMF Managing Director promised that the Fund "will do more to help countries by providing technical assistance on debt issues."

Commenting on digital money, Georgieva said, "Digital money is here, the question is: How can we mitigate the risks?" The IMF pledges to enhance technical support for African countries to address their debt burdens.