US urges IMF not to finance projects not meeting targeted objectives

Bessent was addressing the World Bank development committee and IMF international monetary and Financial Committee.

“Some have come to rely on it as a routine source of external financing while they continue to maintain misaligned policy frameworks.  The number of repeat borrowers suggests that programmes often fail to work as intended and that stronger adjustments are necessary to strengthen programme effectiveness,” he said.

“The IMF and World Bank must take more concerted steps to focus on their respective core missions and deliver greater impact to the countries they support and greater value to taxpayers from the United States and other shareholders,” he noted.

The IMF’s adherence to provide bilateral and multilateral economic surveillance—which identifies imbalances and risks, facilitates the balanced growth of international trade and discourages harmful policies—has weakened over the past decades, Bessent observed.

“We expect the IMF to strengthen its surveillance activities and to do so with objectivity and evenhandedness.  This work should be focused on macroeconomic and financial stability, rather than other areas beyond the IMF’s expertise like climate and gender,” he said.

“IMF programmes should help borrower countries resolve their balance of payments challenges and regain market access after advancing meaningful reforms that will leave their economies stronger and more resilient,” he added.

Fibre2Fashion News Desk (DS)