Agreement reached in France to reform the global financial system

Following his speech at the closing ceremony of the summit that began yesterday in Paris, French President Macron held a joint press conference with Kenyan President William Ruto, US Treasury Secretary Janet Yellen, the president of the International Monetary Fund (IMF), Kristalina Georgieva, and the president of the World Bank, Ajay. Banga.

Macron noted that an agreement was reached at the summit on reform to make the global financial system more effective and fair.

Expressing that the IMF goal of granting 100 billion euros of special drawing rights to the poorest countries has been achieved, Macron affirmed that the commitment of developed countries to provide 100 billion dollars of annual financing to developing countries to support their fight against climate change. soon.

Macron said he expects development banks to increase their lending capacity to $200 billion in the coming years.

NEW SUMMIT 2 YEARS LATER IN PARIS

Stating that they have established an institution to follow the agreement reached at the summit, Macron stated that they will meet at a new summit in Paris to evaluate the results in 2 years.

Noting that he is in favor of introducing international taxes in the maritime sector, Macron said: “However, if China, the United States and some European countries do not follow us, it will not have any effect.”

Kenyan President William Ruto said they agreed at the summit that no country should choose between tackling poverty and tackling climate change, and agreed to create additional resources to support the poorest and most vulnerable countries.

Noting that 52 countries are in debt, Ruto said that the restructuring of these debts or the suspension of debts should be discussed.

TENSION BETWEEN CHINA AND THE WEST

Commenting that the tensions between China and the West are “unhealthy” and “unnecessary”, Ruto invited Macron to the African Climate Summit to be held in Kenya in September.

US Treasury Secretary Janet Yellen called the summit an important step in the effort to reform the architecture of the global financial system and said action must be taken on debt around the world.

Noting that indebtedness is a global problem, Yellen congratulated China for helping indebted countries.

The director of the IMF, Kristalina Georgieva, also drew attention to the increase in inequalities and poverty in the world, noting that the consequences of climate change affect the poor and poor countries the most, and affirmed that easing the burden of the countries’ debt is one of the most important priorities. .

“Employment is the best way to eradicate poverty,” said World Bank President Ajay Banga. He emphasized that the World Bank’s vision must change to live in a world without poverty.

Banga announced that now a country’s debt can be suspended during natural disasters and new insurance has been created that can be used in case of natural disasters.

At the Paris summit, different countries of the world such as China, Kenya, Niger and Brazil were represented at a high level. (AA)