President Ruto Announces 3 Agreements Reached During New Global Financial Pact Summit in France

The New Global Financial Pact Summit has agreed to further discussions on reforming multilateral development banks.

This was announced during a joint press conference on Friday, June 23 at the conclusion of the Summit attended by President William Ruto.

Further, there was an agreement that countries can fight poverty and confront climate change both at once.

President Ruto stated that the session had also reached an agreement on the provision of more resources to support vulnerable countries.

Present during the announcement was the President of France Emmanuel Macron, International Monetary Fund Managing (IMF) Director Kristalina Georgieva, President of the World Bank Group Ajay Banga, and the US Secretary of the Treasury Janet Yellen.

Ruto disclosed that a win-win approach had been crafted, noting that the Summit had also made progress on new global sources of financing for climate action and the plans to insulate them from national interests. 

“This will move us closer to addressing the climate crisis,” he explained.

Asked if the Summit will bear results, Dr. Ruto said “the ultimate judgment rests in our hands as the world will pass the verdict”.

He argued that he would prefer to see a firm commitment to deploy a portion of the new Official Development Assistance sought to provide greater fiscal space for heavily indebted countries by refinancing their maturing debts on more favourable and extended terms.

“I would have liked to see more clarity on how we will mobilise the $9 Trillion a year that the International Energy Agency informs us is necessary to maintain the goal of limiting global warming to 1.5 degrees.”

Ms Yellen said resources generated must be used in a more impactful way to confront the challenges facing the world.

She agreed that reforms must be pursued at the IMF and the World Bank but “gradually, cautiously, and meaningfully”.

“We will intensify private capital mobilisation in energy transition and sustainable infrastructure. We believe this will also spur development,” she noted.

On his part, President Macron observed that an effective monitoring structure will help the world eliminate poverty.

“We also need a better coordination mechanism between the World Bank and the IMF.”

In a world that is changing rapidly and affected by severe shocks, IMF Managing Director said it is time to “step up our leadership”.