By Joe Cash and Liz Lee
BOAO, China, March 30 (Reuters) - Countries in a
relatively stronger position should help vulnerable nations
especially those under debt distress, International Monetary
Fund managing director Kristalina Georgieva said on Thursday.
The IMF chief said such assistance would be particularly
important against the backdrop of high interest rates and
currency depreciation.
"We urgently need faster and more efficient global
mechanisms for providing debt treatments to these countries,"
Georgieva said at the Boao Forum for Asia, adding that such
mechanisms would significantly benefit both debtors and
creditors.
"Success would remove one important source of uncertainty to
the global picture," she said.
Georgieva also said the IMF welcomes China's engagement in
the Common Framework programme and participation in the new
Global Sovereign Debt Roundtable.
The Boao Forum, often seen as Asia's equivalent to the World
Economic Forum's annual meeting in Davos, Switzerland, is being
held in the southern Chinese resort island of Hainan until
Friday.
Georgieva also said countries need to work together to
reinvigorate international trade in an equitable way for more
people to benefit from globalisation, and diversify supply
chains based on economic logic.
She said IMF research showed the long-term cost of trade
fragmentation could be as high as 7% of global gross domestic
product, and Asia as a highly integrated region would be the
most adversely affected by runaway fragmentation.
Governments also need to protect vulnerable people in their
own countries who have been especially hit hard in the past
three years, Georgieva said, referring to the impact of the
COVID-19 pandemic.
"This means fiscal policy providing targeted support to
those most in need or those most affected by food insecurity or
the cost-of-living crisis."
(Reporting by Joe Cash and Liz Lee; Editing by Christopher
Cushing)
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