IMF chief vows reform amid US criticisms and climate focus
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 had criticised the IMF and the World Bank, announcing that both institutions need to gain the trust of the White House.
The head of the International Monetary Fund expressed that her agency values the opinion of the U.S., the largest shareholder in the Fund. Moreover, Georgieva added that she personally welcomes the voice of support from Bessent.
It should be noted that the Treasury Secretary remarked on Wednesday that Georgieva and the World Bank President Ajay Banga are "good leaders," but they must earn the trust of U.S. President Donald Trump's administration. Bessent also stated that both agencies have strayed from their fundamental tasks as they have focused on issues such as climate change.
Problematic climate
Georgieva responded to these remarks in her Thursday speech, explaining that the IMF does not employ strictly climate experts but instead focuses on matters related to climate change. This focus arises from the condition of countries that face severe issues due to climate change and need macroeconomic assistance from the Fund.
Similar to Georgieva, Bessent delivered his Wednesday speech on the sidelines of the IMF and World Bank spring session. He called for substantial reforms in both institutions but emphasised that the U.S. intends to remain involved in the activities of international economic organisations, reported "The New York Times."
The newspaper highlighted that Bessent's speech, who also reiterated during later discussions with 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 organisations.
Last week, Georgieva assessed that the tariffs introduced by Trump and the trade war he ignited will negatively impact the global economy and will cause a significant slowdown this year, but will not lead to a recession.
Referring to this assessment, the Fund's chief said on Thursday that countries should "very quickly" resolve problems related to tariffs and trade because the trade war threatens the global economy.
She stated that she is particularly concerned about the situation of countries in the Association of Southeast Asian Nations (ASEAN) and Africa in this context; however, she added that if global trade continues to contract, these countries might focus on regional trade exchange.
Georgieva also emphasised that "uncertainty is bad for business," which was a veiled criticism of Trump, whose erratic policies worry entrepreneurs and investors.
