IMF chief supports U.S. input amidst policy criticism
IMF chief Kristalina Georgieva stated on Thursday that the Fund will implement Washington's suggestions regarding its policy. The day before, U.S. Treasury Secretary Scott Bessent criticized the IMF and the World Bank, announcing that both institutions must gain the trust of the White House.
The head of the International Monetary Fund mentioned that her agency values the opinion of the U.S., the largest stakeholder in the Fund. Furthermore, Georgieva added that she personally welcomes Bessent's supportive voice.
Let's emphasize that the Treasury Secretary mentioned on Wednesday that Georgieva and World Bank President Ajay Banga are "good leaders," but they must gain the U.S. administration's trust. Bessent also stated that both agencies have strayed from their fundamental tasks by focusing on issues like climate change.
Problematic climate
Georgieva responded to these remarks in her Thursday speech, explaining that the IMF does not have strictly climate experts but addresses issues related to climate change. The reason is the situation faced by countries experiencing significant problems due to this, requiring macroeconomic assistance from the Fund.
Like Georgieva, Bessent delivered his Wednesday speech on the sidelines of the IMF and World Bank spring session. He advocated for significant changes in both institutions but emphasized that the U.S. aims to remain engaged in international economic organizations, as reported by "The New York Times."
The newspaper highlighted that Bessent's speech, during which he reiterated to journalists that Washington does not intend to withdraw from the IMF and World Bank, reassured many politicians. Previously, there was concern that Trump might not uphold commitments to these organizations.
Last week, Georgieva assessed that the tariffs introduced by Trump and the trade tensions he sparked will negatively impact the global economy and significantly slow down growth this year, although not leading to a recession.
Referring to this assessment, the Fund's chief stated on Thursday that countries should "very quickly" resolve problems related to tariffs and trade, as the trade tensions threaten the global economy.
She expressed particular concern about the situation of countries in the Association of Southeast Asian Nations (ASEAN) and Africa, although she added that if global trade continues to contract, these countries might focus on regional trade exchange.
Georgieva also emphasized that "uncertainty is bad for business," which was a subtle criticism of Trump, whose unpredictable policies cause concern among entrepreneurs and investors.
