Conference on sustainable financing of emerging and developing countries
On Wednesday, the 16th of June the Paris Club jointly organized with the Institute of International Finance a high-level international conference dealing with the sustainable financing of emerging and developing countries.
This event gathered more than 150 people and high-level speakers from various horizons: representatives from emerging and developing countries, Governors of Central Banks, representatives from bilateral creditors and from the private sector as well as from multilateral creditors (IMF, World Bank) and multilateral organizations (OECD).
Ms Christine Lagarde, French Minister of Economy, Industry and Employment, closed the conference.
In the first roundtable, participants discussed the financing tools and the principles for sustainable lending and borrowing set up by the international financial community, as well as contingent financing mechanisms that can help preventing debt crises, such as insurance-type facilities.
It gathered, under the presidency of Mr. Pierre Jacquet, Senior Economist and Strategy Director of the French Development Agency:
- Kyungwook Hur, former Korean Vice Minister of Finance and newly appointed Korean Ambassador to the OECD
- Reza Moghadam, Director of the Strategy, Policy and Review Department, International Monetary Fund
- Lassine Bouaré, Minister for Budget, Mali
- Enos Bukuku, Vice Governor of the Central Bank of Tanzania
- Vincenzo La Via, Chief Financial Officer, World Bank
- Steven Tvardek, Head of the Export Credit Division, OECD
- Avinash Persaud, Chairman of Intelligence Capital Limited
Speakers of the first roundtable (from left to right: Vincenzo La Via, Avinash Persaud, Kyjngwook Hur, Pierre Jacquet, Reza Moghadam, Steven Tvardek, Enos Bukuku, and Lassine Bouaré)
The various speakers underlined the existing tension between the necessity to comfort developed countries’ markets and the need to finance development. Thus, they underlined the responsibility of emerging countries in the financing of development, and the improvement by the International Financial Institutions of the existing financing instruments, as their main action should be to reassure the investors.
Vincenzo La Via, Chief Financial Officer, World Bank
Pierre Jacquet, Senior Economist and Strategy Director of the French Development Agency, Steven Tvardek, Head of the Export Credit Division at the OECD, and Enos Bukuku, Vice Governor of the Central Bank of Tanzania
Kyungwook Hur, Korean Ambassador to the OECD, Pierre Jacquet, and Reza Moghadam, Director of the Strategy, Policy and Review Department of the International Monetary Fund
Enos Bukuku, and Lassine Bouaré, Ministry for Budget of Mali
The second roundtable dealt with the issues raised by debt vulnerabilities linked with the financing of sub-sovereign entities and non sovereign entities: the speakers talked about sub-sovereign loans, before discussing the restructuring of non-sovereign debt and related issues.
Under the presidency of Mr Jean Lemierre, Adviser to the President of the group BNP Paribas, it gathered:
- Lee Buchheit, Partner, Cleary Gottlieb Steen & Hamilton LLP
- Simon Compaoré, Mayor of Ouagadougou, Burkina Faso
- Jean-Jacques Moineville, Operations Director, French Development Agency
- Marcia Favale-Tarter, Adviser to Karim Massimov, Prime Minister of the Republic of Kazakhstan
- Dieter Wojahn, Mmember oft he Executive Board of Euler Hermes
- Richard Fox, Senior Director, Middle East and Africa, Fitch Ratings Ltd
(from left to right) : Lee Buchheit, Partner at Cleary Gottlieb Steen & Hamilton LLP ; Marcia Favale-Tarter, Adviser to Karim Massimov, Prime Minister of the Republic of Kazakhstan; Jean Lemierre, Adviser to the President of the group BNP Paribas; Dieter Wojahn, member oft he Executive Board of Euler Hermes; Richard Fox, Senior Director, Middle East and Africa, Fitch Ratings Ltd; Jean-Jacques Moineville, Operations Director, French Development Agency; Simon Compaoré, Mayor of Ouagadougou, Burkina Faso.
This panel had the opportunity to approach the beneficial effects of sub-sovereign loans, with the example of the municipality of Bamako that contracted a loan with the French Development Agency in order to rebuild its central market.
Problems raised by the restructuring of non-sovereign entities were dealt with in a very concrete manner, notably thanks to the participation of Mrs. Marcia Favale-Tarter that allowed to evoke the Kazakhstanese case.
Jean Lemierre, Dieter Wojahn, Richard Fox
Richard Fox, Jean-Jacques Moineville, Simon Compaoré
Lee Buchheit, Marcia Favale-Tarter, Jean Lemiere