IMF should reallocate funds to needy countries – PM

Prime Minister, Dr Ralph Gonsalves, has pointed to a need for a reallocation of funds from the Special Drawing Rights window of the International Monetary Fund, from the rich countries which do not use these funds to those that need it.

The Prime Minister made the comments on NBC radio on Wednesday, as he reported to the nation on his recent trip abroad which took him to London, UK; Ghana; and Paris, France.

In Paris, the Prime Minister was involved in a high level international summit that brought together develop and developing countries around the world. He made the point that developing states need more money to help in their mitigation efforts against climate change and other disasters.

He explained that developed countries do use their Special Drawing Rights at the IMF, but that when faced with challenges, these developed countries have their own buffers, and as such, they do not need to seek funding from the IMF.

He spoke about what more can be done “If we could have some of this money reallocated to countries around the world who need more money.”

Gonsalves explained that this issue formed part of the discussions at the meeting in the French capital. The Paris Summit for a New Global Financing Pack, was organised by French President, Emmanuel Macron.

It aimed to build a new consensus for a more inclusive international financial system to fight inequalities, finance the climate transition and bring countries closer to achieving the Sustainable Development Goals. The June 22-23 Summit brought together more than 300 high-level participants, including Heads of State and Government, leaders of international organisations and representatives of civil society, foundations, funds and the private sector.

Prime Minister Gonsalves also noted on local radio that developing countries need a waiver on outstanding loans, in times of disaster.

He, however, concluded that the developed countries are mostly interested in tinkering and not necessarily in making any fundamental changes.

The prime Minister’s recent travels also took him to West Africa, more specifically, to Ghana for celebrations of the 30th anniversary of the Africa Export-Import Bank.

St Vincent and the Grenadines is among 11 Caribbean Community (CARICOM) countries which are in partnership with this bank, that has an asset base of over US $32 billion.

The Prime Minister was also in London, where he held a town hall meeting with Vincentians residing in England.