On the occasion of the Paris Summit for a New Global Financing Pact, the Finance for Development Lab and its partners are hosting the following high-level events affiliated to the Summit.
Thursday 22nd June 2023
3:30 pm - 5:00 pm
By Invitation Only
The G-20 has agreed to rechannel $100 billion worth of Special Drawing Rights (SDRs), but current rechanneling
mechanisms can only absorb $63 billion. As a result, there is an immediate need to find a way to rechannel the
remaining $37 billion — specifically to multilateral development banks. Two proposals have been suggested: a
"hybrid capital instrument" and an "SDR-denominated bond." However, the European Central Bank (ECB) has
expressed informal concerns about rechanneling SDRs to MDBs. This poses a challenge given the financial and
political importance of the eurozone countries, which collectively hold $200 billion in SDRs and have
championed SDR utilization. This workshop will bring together key policymakers and stakeholders to explore potential rechanneling mechanisms, EU rules, and the possibility for eurozone countries to deliver on their pledges to rechannel surplus SDRs.
Friday 23rd June 2023
7:30 am - 9:00 am
Hybrid event
The weight of sovereign debt in developing countries is threatening to reverse development gains made in the last 20 years. To avoid a lost decade of stalled restructurings and high debt service pressure, the global financial architecture needs to evolve. Currently, debt restructuring focuses on stabilisation, rather than on prosperity or resilience. Under the chairmanship of Ghana, the V20 Group, representing 58 of the world’s most systemically climate-threatened economies, launched the Accra-Marrakech Agenda (A2M) in April 2023 with climate resilience at its core.
10:30 am - 12:00 pm
Hybrid event
In the face of persistent interconnected crises, many African countries are struggling to access adequate resources. Rising cost of debt is weighing on development priorities and their ability to invest in climate adaptation and mitigation. In April, a group of African Ministers of Finance agreed on A SET OF FIVE PRIORITIES for the global financial architecture, including the need for more concessional finance and the rechanneling of SDRs to the African Development Bank.
This requires increasing International Development Association (IDA) flows, implementing the recommendations of the G20 Independent Review of MDBs Capital Adequacy Framework (CAF), and shoring up the IMF Poverty Reduction and Growth Trust (PRGT).
The Paris Summit is an opportunity to go beyond issue identification to effectively agreeing on a PLAN OF ACTION that ensures African voices are front and centre in the dialogue.
