The International Monetary Fund has said it has a responsibility to help low-income countries struggling with rising debt, high inflation and price shocks caused by war spillovers.
IMF Managing Director Kristalina Georgieva made the remarks as the fund's annual meetings in Bangkok wrapped up on Saturday, saying discussions with global policymakers had revealed both "optimism and worry".
"Optimism from the resilience of the global economy, the promise of AI, the dynamism of Asia," Georgieva told reporters. "But AI is also recognised to be a source of worry and so are inflation, high levels of debt, wars, climate risks."
Georgieva said vulnerable nations are missing out on the artificial intelligence investment boom driving growth in richer countries, while simultaneously facing higher borrowing costs.
Higher global interest rates now mean low-income countries spend between 8 and 14 percent of their revenue on debt repayments, up from previous years, she said.
"I can tell you that people everywhere, but especially in poorer countries, don't like inflation. Inflation is like a tax on the poor," Georgieva said.
The warnings came as low-income, oil-importing nations face the heaviest impact from rising global energy costs. Prices have soared since February, when the United States and Israel launched a war on Iran, leading to retaliatory strikes across the Middle East and disrupting oil and gas flows.
A statement issued by the chairman of the International Monetary and Financial Committee (IMFC), Saudi Finance Minister Mohammed Al-Jadaan, warned that escalating conflicts and trade tensions could cause further damage.
"Escalating conflicts and trade tensions could further disrupt critical trade routes, exacerbate commodity price pressures, including in refined energy products, and worsen energy and food security," the statement read.
The IMFC serves as the main steering committee for the 191-member institution.
Georgieva said the IMF has a responsibility to help countries restructure debt where needed, support domestic resource mobilisation, attract international finance and create conditions for private investment.
She added that affected countries must set spending targets that prioritise growth and protect the most vulnerable, describing the IMF's approach as a "relentless pursuit of more resources for low-income countries".
"When we do our best, it translates into better lives for people," she said.
Georgieva also announced that the IMF plans to support Iraq "very firmly" with a requested loan programme, while talks with Lebanese authorities are described as making progress.
"We will get to Iraq both money and policy support," she said. "In the case of Lebanon, we are in very intense discussions with Lebanese authorities. We have made significant progress towards the programme. We have still a bit more work to do together, and I'm confident we will be successful."
