Minister Sitharaman Calls for Fair Sovereign Ratings and IMF Reforms at Global Meet

Finance Minister Nirmala Sitharaman advocates for fairer sovereign ratings and IMF governance reforms at the IMF's 2024 Annual Meeting. Emphasizing economic fundamentals of emerging markets, she calls for improved credit rating methodologies and highlights the need for IMF adaptability amidst shifting global economic landscapes.

Union Finance Minister Nirmala Sitharaman raised concerns about the fairness of sovereign ratings for emerging markets during the International Monetary Fund's 2024 Annual Meeting. In her address in Washington, D.C., she stressed that these ratings must reflect true economic fundamentals to ensure fair access to capital and attract private investment.

Sitharaman emphasized the importance of better engagement with credit rating agencies to refine methodologies that accurately capture a country's economic resilience and repayment ability. The Ministry of Finance echoed these sentiments, highlighting the need for substantive reforms in the way sovereign ratings are approached.

In a wider context, Sitharaman called for significant IMF governance reforms, pointing out that the changing global order necessitates adaptation. Acknowledging the IMF's expanding role, she praised the organization's efforts in securing economic stability while cautioning against risks like geopolitical tensions and weak medium-term growth prospects.

(With inputs from agencies.)