The G24 made its own request for Guzmán to the IMF

the G24 today made his own request to the Minister of the Economy, Martín Guzmán, and demanded the International Monetary Fund (IMF) to change the interest rate increase policy. Member countries have argued that this will help countries’ economic recovery amid the coronavirus pandemic.

The group ensured that the IMF must correct the “Regressive and procyclical character” of this policy, by a declaration. This is a demand that was promoted by Minister Guzmán during the 2020 meetings.

“Since this is the year for the IMF is reviewing its policies on access limits and interest rate surcharges, We urge the IMF to correct the regressive and pro-cyclical nature of the surtax policy and consider specific measures, such as the suspension of these surcharges at this stage, to help countries recover their economies. We encourage the IMF to continue to consider a permanent significant reduction in surcharges or their elimination, ”said one paragraph of the statement.

Guzmán had declared that the surtax policy was “regressive and procyclical”. The same words were expressed today by the G24 in his statement: “It is uneven, because it disproportionately affects emerging and middle-income countries with the lowest quotas, and it is procyclical, because it imposes harsher conditions on countries with more unfavorable market conditions . “