Deputy Prime Minister Hong Nam-ki at IMFC: "Support for Ukraine and Low-Income Countries Must Be Strengthened"

"IMF's Role Needed to Overcome Two Mountains: COVID-19 and War"

[Asia Economy Washington (USA) = Reporter Kwon Haeyoung] Hong Namgi, Deputy Prime Minister and Minister of Economy and Finance, stated on the 21st (local time) that "support for Ukraine and low-income countries affected by the war should be strengthened to minimize the negative ripple effects of the Ukraine war."

Deputy Prime Minister Hong said at the International Monetary and Financial Committee (IMFC) held in Washington DC, USA, on the same day, "The role of the International Monetary Fund (IMF) is needed to overcome the two mountains of 'COVID-19' and 'war'."

He also urged securing funds for the Rapid Financing Instrument and Sustainability Trust (RST). Deputy Prime Minister Hong said, "Our country will participate in the RST with 900 million Special Drawing Rights (SDR)," and proposed, "Even if the RST target amount (approximately 33 billion SDR) is not fully secured, let us actually operate the RST within the available scope this year to provide timely support to vulnerable countries."

Furthermore, Deputy Prime Minister Hong welcomed "the IMF's recognition of the expanded use of measures such as the Capital Flow Management (CFM) through the review of Institutional View (IV) on capital outflows this year to proactively ease sudden capital outflows and inflows," and requested, "to actively advise on capital flow management measures during countries' annual consultations and other occasions to respond to financial uncertainties."

In addition, he emphasized, "an increase in quotas, which are the fundamental resources, is necessary for the IMF's pivotal role as a global financial safety net," and expressed hope that "the quota formula will be reformed to faithfully reflect the economic power of each country."

This content was produced with the assistance of AI translation services.