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Switzerland signs IMF deal to support lower-income countries

Swiss economics minister Guy Parmelin speaking to Janet Yellen, US Treasury Secretary at the Development Committee Plenary during the World Bank/IMF Spring Meetings at the World Bank headquarters in Washington, Friday, April 19, 2024.
Parmelin signed the deal on Friday in Washington, where he was attending meetings of the World Bank and IMF together with delegates including US Treasury Secretary Janet Yellen. KEYSTONE/The Associated Press

Economics Minister Guy Parmelin has signed a partnership agreement that will see Switzerland contribute around CHF10 million ($11 million) to the Global Partnership in Public Finance (GPFP) initiative of the International Monetary Fund.

Launched in 2023, the GPFP is a cornerstone of the IMF’s efforts to help developing and emerging countries in particular build strong financial policies and create collective resilience.

The Swiss contribution to the GPFP will enable the Fund to help its emerging and low-income member countries achieve their economic and development goals in a challenging fiscal environment, said Gita Gopinath, first deputy managing director of the IMF, at the signing ceremony in Washington. Switzerland is one of the five most important donor countries for IMF capacity-building.

+ Is Switzerland doing enough as debts in poorer countries soar?

Parmelin took part in the World Bank’s plenary meeting in Washington on Friday. He reaffirmed Switzerland’s role in promoting sustainable and inclusive initiatives to reduce global poverty.

The minister also emphasised the importance of international cooperation in tackling global challenges. For example, the World Bank’s International Finance Corporation (IFC) can significantly promote economic growth and job creation through its support for the private sector.

In addition to Finance Minister Karin Keller-Suter and Parmelin, the outgoing director of the Swiss National Bank, Thomas Jordan, also took part in this year’s IMF/World Bank spring meetings this week.

Translated from German by DeepL/gw

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