Khaberni, IMF Managing Director Kristalina Georgieva alerted at a press conference held on Wednesday that countries need to "prepare for a difficult phase" if oil prices remain high due to the war in the Middle East.
Georgieva said, "We need to be prepared for a difficult phase" if the war continues and oil prices remain high, emphasizing that "all countries are concerned, even if the impact of the shock is not identical" among them.
During the annual meetings of the IMF and the World Bank in Washington, attended by delegations from the majority of the world's countries, Georgieva saw that "countries must take the necessary measures to reduce the most energy-consuming activities." She added, "This should be done now, not waiting for several weeks."
She urged countries to avoid engaging in large expenditures "at a time when global debt is at its highest level since World War II."
The "Fiscal Monitor" report on fiscal policies published by the IMF on Wednesday indicated that the global debt ratio reached 94% of the global GDP last year and could reach 100% by 2029 if no efforts are made.
Georgieva criticized some measures that a number of countries might adopt, including "export controls or poorly designed tax reductions."
She added, "The intentions are good, but protecting citizens through such measures will only prolong the difficulties associated with rising prices."
She also saw that central banks should be cautious and "monitor how the situation evolves" before making any decisions regarding key interest rates, especially if inflation expectations remain.
However, the priority at the moment remains with the financial situation of the countries, while the IMF already had about 40 active programs before the war broke out.
So far, the Fund has received "about 12 requests" for new assistance programs, some of them "from sub-Saharan Africa," according to Georgieva.
She said, "These countries need our attention, and are a significant focus in our discussions this week on how to best provide assistance in a world full of repeated shocks and a lack of clarity."
