The International Monetary Fund (IMF) has urged heavily-indebted nations to consider proactive debt restructuring to restore macroeconomic stability and sustainable growth.
In a report ahead of the IMF/World Bank Spring Meetings, Managing Director, Kristalina Georgieva stressed the need for decisive fiscal reforms and gradual adjustment plans to rebuild policy space.
She warned that prolonged trade tensions, rising tariffs, and financial market uncertainty are creating global instability, especially for emerging and low-income economies. These nations are also facing shrinking aid flows, making domestic resource mobilization more urgent.
Georgieva explained the importance of exchange rate flexibility, strong monetary policy, and independent central banks to maintain price stability.
She called for vigilance over risks from non-bank financial institutions and advocated tighter regulation.
Rising protectionism, she noted, threatens productivity, disrupts supply chains, and raises consumer prices. Tariffs reduce economic activity and worsen global inequality, especially in smaller economies.
Georgieva concluded that restoring trust in global trade and economic systems is essential. While globalization has lifted many out of poverty, it has also left others behind, fueling discontent. The IMF urged countries to act boldly, collaborate internationally, and pursue reforms that ensure long-term resilience and fairness in the global economy.
