UAE continues to lead in poverty eradication efforts - Beacon

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Sunday, October 27, 2024

UAE continues to lead in poverty eradication efforts


The UAE signed two agreements with the International Monetary Fund aimed at promoting sustainable development and supporting efforts to eradicate poverty around the world.

Mohamed Al Hussaini, UAE Minister of State for Financial Affairs, and IMF managing director Kristalina Georgieva signed the deals on the sidelines of the the IMF and World Bank Annual Meetings in Washington, which concluded on Saturday.

The agreements involve the Emirates contributing to the financing of the Poverty Reduction and Growth Trust, which the IMF describes as its main vehicle for providing interest-free financing to low-income countries, and the Resilience and Sustainability Trust, which assists low and middle-income countries to build resilience to external shocks and ensure sustainable growth.

Discussions during the meeting touched on ways to strengthen the World Bank Group's development finance to tackle global challenges such as climate change and digital transformation. 

The meeting also highlighted the need for a comprehensive approach to enhance the financial capacity of international financial institutions, focusing on operational efficiency and technology.

The meeting addressed innovative financial solutions, including green bonds, to manage debt while supporting environmentally friendly projects.

According to the IMF, Poverty Reduction and Growth Trust lending is expected to reach nearly $40 billion this year, with 69 countries eligible for financing.

Amid increasing concerns about climate change, the Resilience and Sustainability Trust has taken on significantly more importance.

Back in 2023, the UAE announced a $200 million commitment to the IMF's Poverty Reduction and Growth Trust fund, while also contributing an additional $200 million to theResilience and Sustainability Trust during the Cop28 climate meeting hosted in Dubai.




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