INTERNATIONAL MONETARY AND FINANCIAL COMMITTEE
the IMFC Deputies meeting
Tuesday, September 20, 2022,
Statement by Mr. Mouatassem BOUDIAF
Deputy Governor Bank of Algeria
On behalf of
Islamic Republic of Afghanistan, Algeria, Ghana, Islamic Republic of Iran,
Libya, Morocco, Pakistan, and Tunisia
Session 1
Global Economic Outlook
Thank you Chair. I also thank the First DMD for the lucid presentation.
 Since our last meeting, the global economy continues to face strong global
headwinds, triggered by the cumulative negative spillovers of the two overlapping
crises. Risks to the global outlook feared in April, and even as late as July, have
materialized, and the outlook continues to be subject to unusually high downside
risks, due to a number of global economic and political factors. We are also facing a
global inflation crisis reflecting the consequences of the unprecedented policy
support during the pandemic and the pandemic's lingering impact on supply chains.
In most cases, price pressures predate the conflict in Ukraine, but were exacerbated
by direct and indirect impacts of the war.

Taming the global inflation would require a collaborative approach and
coordinated policy action. It is understandably a delicate balancing act and policy
slippage, in either direction, would potentially have severe consequences, including a
prolonged global recession in case of over-tightening, that we can ill afford. In fact,
the global tightening of financial markets and the sharp real appreciation of the US
dollar are already having pronounced adverse impact on EMDEs through capital
flows, currency depreciation and debt distress. The increase in sovereign spreads has
elevated debt at risk for vulnerable EMDEs, including those in our constituency.
 The high food and fuel prices have had a clear disproportionate impact on poorer
countries and vulnerable populations in all countries, and the two overlapping crises
have worsened poverty significantly in the developing economies since 2020, with
food insecurity emerging as a new major challenge in low-income countries. In this
regard, strong global initiatives are needed to address food insecurity, reduce poverty
worldwide and alleviate the risks of social unrest that is already evident. The IMF
would need to do its part as it did during the COVID pandemic. The IMF's proposed
Food Shock Window could play a useful role if the facility is more accessible, and its
terms and conditions are less restrictive.
 The adverse effects of climate change, to which no country is immune, continue
to wreak havoc in all parts of the world. Most recently, the flooding in Pakistan, a
member of our constituency, has created an unprecedented humanitarian
catastrophe, a major health crisis, with initial damage assessed at 10-15 percent of
GDP. We have to recognize and collectively address the existing highly inequitable
system, where countries with negligible carbon footprints bear the burden of
negative externalities of climate change.
I stop here. Thank you Chair
INTERNATIONAL MONETARY AND FINANCIAL COMMITTEE
the IMFC Deputies meeting
Tuesday, September 20, 2022,
Statement by Mr. Mouatassem BOUDIAF
Deputy Governor Bank of Algeria
On behalf of
Islamic Republic of Afghanistan, Algeria, Ghana, Islamic Republic of Iran,
Libya, Morocco, Pakistan, and Tunisia
Session 2
MD's Global policy Agenda
Thank you, Chair. I will be brief.
We welcome the Managing Director's GPA, which we believe is balanced and well
focused. We particularly welcome and strongly support the GPA's emphasis on
"acting together and acting now" to alleviate the immediate hardship due to
successive years of global crises, and to build resilience for addressing future shocks.
Food insecurity and debt distress are two key challenges facing the developing
countries where a global collaborative approach is most urgently needed.
It is also important to recognize that the current geopolitical fragmentation will likely
have major longer term implications for the global economy and lasting impact on
global trade, including energy, and supply chains, for which we have to prepare.
We welcome the Fund's readiness to enhance and adapt its lending toolkit to address
not only the immediate financing needs related to the two overlapping crises, but
equally importantly, the future crises that could not be easily anticipated. In this
connection, we welcome the establishment of the RST and urge members with strong
external positions to meet its funding requirements, including through additional
pledges to channel SDRs and bilateral contributions. We would like to stress at this
juncture that the RST was created to help members finance long-term structural
changes to build resilience to different shocks, with climate change being the main
one but not the only one.
Finally, at the risk of repeating what I said in the previous session, I would like to
underscore the GPA's increased emphasis on climate change, recognizing and
addressing the existing inequity in burden sharing between small and large emitters.
It is also important to recognize that there are different paths leading to the same
objective of saving the planet that we all share.
I end it with that. And thank you Chair.