11 October 2018
Speech - #2018004, 2018

IFA Intervention: G20 Finance Ministers and Central Bank Governors Meeting, Bali

Thank you, Chair.

Firstly, I welcome the report from the EPG and particularly congratulate it on its work. There is a lot of merit in these proposals. It is very timely given that we need to steer the global financial system through some challenging times.

I have a few quick points.

Firstly, we welcome the suggestion that the G20’s role in the global financial architecture should focus on developing political consensus on the key strategic issues, rationalizing work streams and refocusing on a multi-year strategic agenda. We also welcome Argentina’s proposal that the International Financial Architecture Working Group take this task forward in 2019. Some thought should be given to a tight timeframe to provide advice at the next Spring Meetings.

In terms of the IMF’s role going forward, it is critical that we maintain confidence in IMF resourcing given it is so important to the resilience of the financial architecture. If we cannot get movement on quota reform, then we need to ensure adequate resourcing is maintained. We share the United Kingdom’s view in this respect. We should be looking at temporary borrowing mechanisms to ensure that is the case.

Finally, we welcome the work of the IMF and World Bank in encouraging debt transparency and sustainability. We all know that debt, both public and private, is at record levels. We are concerned about the indebtedness of a number of countries, including in our region, the Pacific. The role of non-Paris Club members is becoming increasingly important. We support the role of the Paris Club in reaching out to non-traditional sovereign lenders as a key aspect of their work going forward.

Thank you.