IMF urges members to stock up funds for low-income, vulnerable states
Summary
The IMF has urged member countries to replenish key funds for low-income and vulnerable states as rising debt-service costs, weak development aid and global economic risks pressure developing economies. Kristalina Georgieva warned that the gap between advanced and developing countries could widen further, while the fund also flagged risks from AI, high debt and Middle East tensions.
Key Points
- Kristalina Georgieva said current economic trends and rapid AI advances could deepen the divide between advanced and developing economies.
- The IMF urged members to boost funding for the Poverty Reduction and Growth Trust and replenish the Catastrophe Containment and Relief Trust.
- Rising benchmark yields, debt-service costs and falling development assistance are putting heavy pressure on low-income countries.
- The IMF flagged global growth and financial stability risks, while saying Senegal could move quickly through its debt restructuring process.
