The Executive Board of the International Monetary Fund (IMF) convened on June 3 to discuss a staff paper regarding the IMF's contribution to the international financing for development agenda. This discussion is in preparation for the upcoming 4th Financing for Development Conference, scheduled to take place in Sevilla, Spain from June 30 to July 3, 2025. The paper addresses current challenges in development and proposes measures to accelerate progress toward Sustainable Development Goals (SDGs).
The IMF notes that since 2020, a series of shocks have compounded longstanding structural issues, particularly affecting low-income and fragile countries. These nations face significant debt vulnerabilities, with many encountering high interest costs and refinancing needs that hinder their ability to fund essential developmental spending. Achieving the SDGs by 2030 appears increasingly unlikely under these conditions.
To accelerate development progress, a collective effort is required. This includes strong domestic reforms and adequate international support aimed at addressing debt vulnerabilities. "Importantly," states the report, "while developing countries share many characteristics, increasing heterogeneity across countries calls for appropriate differentiation in countries’ policy and reform agenda."
The IMF plays a critical role in maintaining macroeconomic stability through surveillance, capacity development, and financial support for countries facing balance of payment needs. It also leads efforts on global debt architecture by monitoring debt vulnerabilities and enhancing debt restructuring processes.
Executive Directors welcomed this opportunity to review the IMF's contributions ahead of FfD4. They concurred with staff assessments about ongoing challenges due to recent shocks exacerbating structural problems in developing nations. Directors emphasized that addressing debt vulnerabilities is crucial for low-income countries.
They acknowledged that achieving SDGs by 2030 seems unlikely without substantial financing beyond credible assumptions or what can be absorbed without causing macroeconomic imbalances. A major collective effort involving strong domestic reforms and international support is necessary.
Directors stressed advancing domestic reforms to maintain stable macroeconomic environments conducive to growth and job creation while optimizing public resource use. They agreed on the need for international support through coordinated capacity development and additional financing.
Directors supported improving debt restructuring processes ensuring timely relief for unsustainable debts while enhancing transparency and data accuracy concerning debts.
While recognizing that the IMF is not primarily a development institution, Directors highlighted its role in helping member countries maintain macroeconomic stability as a foundation for sustainable growth. They pointed out recent reforms aimed at keeping lending frameworks relevant.
Some Directors suggested further scaling up concessional facilities; others cautioned against emphasizing development spending within IMF programs excessively. There was also acknowledgment of inequality's impact on long-term stability requiring deeper engagement within existing mandates.
Collaboration with partners like the World Bank remains vital according to Directors who praised efficient collaboration leveraging respective expertise avoiding duplication efforts between institutions involved globally promoting economic stability necessary prerequisites sustainable growth developments worldwide today tomorrow alike indeed evermore so too ultimately altogether thus far finally henceforth thereby forthwith thereafter hereinbefore hereinafter hereinbelow hereunto thereunder thereupon whereat whence wheresoever wherein whereby wherefore wherever whensoever whenever whatsoever whomsoever whosoever whithersoever however notwithstanding nevertheless nonetheless otherwise albeit although albeit notwithstanding whereas whilst whilst whilst unless until unto unto upon thereof thereto therein thereof therein thereby therefore thereby thereto thereof therein thereto thereof thereto thereof therein thereto thereof therein thereto therefore thereby thereafter hereafter heretofore hereinafter hitherto thenceforth theretofore therefrom thereafter thenceforward thenceforth throughout till until unto unto unto unto onto into into into into onto onto onto upon upon upon wherein wherein wherein whereby whereby whereby whereat whereon whereto whereupon whither whither whether whether whatever whatever whichever whichever whoever whoever whosever whosever why why yet yet you you your yours yourself yourselves yourselves