IMF, World Bank commit to address debt vulnerabilities, climate change, digital transformation

The International Monetary Fund (IMF) and World Bank have restated their commitment to address issues relating to the vulnerability of nations to debt, and problems with climate change and facilitate digital transitions for people who are still offline.

The Bretton Woods institutes disclosed their resolve in a joint statement signed by the President of the World Bank Ajay Banga and the Managing Director of IMF Kristalina Georgieva.

On addressing nations vulnerable to debt, the statement noted that the recent issues relating to the increase in debt susceptibility are an opportunity for collaboration between the two institutions.

They also said their strategies include; preventing nations from further build-up of debt and debt restructuring.

On digital transitions, the institutions lamented the fate of about 3 billion people who are not connected to the internet with most of them in the global south.

The bank noted it will collaborate with governments in emerging and developing nations to tackle regulatory and infrastructure hurdles hindering digital inclusion and transformation.

Its aim is to advance financial inclusion, establish cost-effective payment systems, and enhance the digitization of government services and operations.

On the other hand, the IMF said it is dedicated to bolstering digital transformation within the financial sector, encouraging broader adoption of cutting-edge financial technologies while safeguarding the integrity and stability of the financial system.

Both organisations recognised climate change as a threat to global peace, security, economic stability and development. Both organisations resolved to address the challenge of climate change by assisting all member nations in aligning their climate and development objectives.

Recognizing the vital importance of this endeavour, they intend to formalize and enhance cooperation between the Bank and the Fund in this domain.