Bonds News

U.S. Treasury chief urges IMF, World Bank to use resources judiciously

WASHINGTON, Oct 14 (Reuters) - U.S. Treasury Secretary Steven Mnuchin said on Wednesday that the International Monetary Fund and World Bank needed to work within their existing resources to fight the coronavirus pandemic and urged member countries to endorse a proposed debt restructuring framework.

In a statement to the two institutions’ steering committees, Mnuchin said they needed to continue to provide financing, advice and capacity development, but they needed to use resources judiciously and plan for transitions to normal financing arrangements.

“It is critical that the World Bank manage financial resources judiciously and transparently, with clear justifications for allocations to countries with robust access to other financing sources, so as not to burden shareholders with premature calls for new financing,” Mnuchin said. (Reporting by Andrea Shalal and David Lawder; Editing by Leslie Adler)