In her remarks at the 2023 IMF-World Bank Annual Spring Meetings, U.S. Secretary of the Treasury Janet L. Yellen outlined key priorities for the week. She discussed the global macroeconomy, noting that progress has been made with stabilizing commodity prices and easing supply chain pressures, but downside risks remain, including the ongoing consequences of Russia’s illegal war against Ukraine and recent pressures on banking systems in some countries.
Yellen also highlighted the issue of debt overhang, stating that more than half of all low-income countries are near or in debt distress. She commended China’s agreement to provide financing assurances in the Sri Lanka case, but emphasized the importance of all creditors delivering on their commitments, including completing debt treatment for Zambia and establishing a creditor committee for Ghana. Yellen called for improvements to the international debt restructuring process and expressed anticipation for discussions on the Common Framework process and debt treatment process at the Global Sovereign Debt Roundtable.
Furthermore, Yellen emphasized the need for coordination with allies to support Ukraine in its defense against Russia’s illegal war. She praised the IMF’s reform program for Ukraine, which will contribute to international efforts to meet Ukraine’s economic needs and support President Zelenskyy’s anti-corruption reform efforts.
Lastly, Yellen noted the importance of the evolution of the multilateral development bank system, calling for building resilience against global challenges such as climate change, pandemics, and fragility and conflict. She expressed encouragement for the progress made in refreshing the World Bank’s strategy to align with these challenges.
Overall, Yellen’s remarks at the Spring Meetings focused on key priorities, including the global macroeconomy, debt overhang, Ukraine’s situation, and the evolution of multilateral development banks, highlighting the need for international coordination and cooperation to address these pressing issues.