Agreement reached in Paris to reform the global financial system

Following his speech at the closing ceremony of the ‘New Global Financial Pact Summit’ that started yesterday in Paris, French President Emmanuel partnered with Kenyan President William Ruto, US Treasury Secretary Janet Yellen, International Monetary Fund (IMF) Director Kristalina Georgieva and World Bank President Ajay Banga. held a press conference.

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

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

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

New summit in Paris after 2 years

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 on the maritime sector, Macron said, “However, if China, the USA and a few European countries do not follow us, it will have no effect.”

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

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

Assessment of tensions between China and the West as “unhealthy”

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 noted that the summit constitutes an important step in the effort to reform the architecture of the global financial system and stated that action should be taken on borrowing around the world.

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

IMF Director 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 stated that easing the debt burden on countries 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 should change in order to live in a world without poverty.

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

At the summit in Paris, different countries around the world such as China, Kenya, Niger and Brazil were represented at a high level.