Minister McGrath announces €800 million financing for international climate action and pandemic preparedness ahead of the IMF and World Bank Spring Meetings

The Minister for Finance, Michael McGrath T.D., travels to Washington D.C. this afternoon, 16 April 2024, for the Spring Meetings of the IMF and World Bank, having secured Government approval at this morning’s Cabinet meeting to provide €800 million in financing for international climate action and pandemic preparedness.

The Spring Meetings provide the Minister with a valuable opportunity to engage with his fellow finance ministers from around the world, along with leading figures from the IMF and World Bank, to discuss current and emerging economic, fiscal and monetary developments.

This support will be provided by channelling 20% of Ireland’s 2021 allocation of Special Drawing Rights (SDRs) to the IMF’s Resilience and Sustainability Trust.

Special Drawing Rights are allocated to member countries of the IMF – most recently in 2021 in response to the unprecedented global health and economic crisis. These assets are held by the Central Bank of Ireland and today’s decision will allow 20% of the 2021 allocation to be channelled (i.e. loaned) to the Resilience and Sustainability Trust. This is in response to call from the IMF Managing Director, Kristalina Georgieva, to the world’s most advanced economies to help poorer countries by using their allocated SDRs to tackle current and emerging crisis’s facing them across a range of issues.

Speaking ahead of the Spring Meetings today, Minister McGrath commented:

“As Minister for Finance and Ireland’s Governor at both the IMF and World Bank, I am looking forward to participating in this year’s Spring Meetings in Washington D.C.

I am delighted to announce that Ireland will now channel 20% of our 2021 IMF Special Drawing Right allocation to the IMF Resilience and Sustainability Trust, amounting to approximately €800 million. This IMF Trust is a vital instrument to help low-income and vulnerable middle-income countries build resilience to external shocks and ensure sustainable growth, contributing to their longer-term balance of payments stability.

Ireland’s Policy for International Development focuses on contributing to the UN Sustainable Development Goals and, in particular, to reaching and assisting those who are furthest behind.

During my visit, I will hold a series of constructive engagements with my fellow Finance Ministers, the IMF and the World Bank on how best to address the economic challenges we are currently facing and those on the horizon.

This year’s Spring Meetings provide a timely opportunity for economic and financial leaders from across the world to demonstrate the value of multilateralism by exchanging experiences on effective policy-making to meet our shared global goals.”

Over the course of the Spring Meetings, Minister McGrath will have engagements including meeting with the IMF MD Georgieva, and the President of the World Bank, Ajay Banga. He will also attend a range of meetings including the International Monetary and Financial Committee, a roundtable discussion on Ukraine, the Financial Action Task Force, the Coalition of Finance Ministers for Climate Action and will take part in a high level speaking engagement at the Atlantic Council with US and Washington-based policy makers and investors.

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