FM Sitharaman meets IMF chief, discusses impact of recent 'geopolitical developments' on global economy

Finance Minister Nirmala Sitharaman on Tuesday held talks with IMF chief Kristalina Georgieva during which they voiced concern over the impact of the recent "geopolitical developments" on the global economy and the challenges faced by countries due to rising energy prices.

Sitharaman, who arrived in Washington on Monday, met the International Monetary Fund Managing Director during the Spring Meetings of the IMF and the World Bank.

"Discussing the recent geopolitical developments, FM Smt @nsitharaman and Ms @KGeorgieva raised concerns about its impact on the global economy and the challenges linked to the rising energy prices due to it," the Finance Ministry tweeted.

Since Russia invaded Ukraine late in February, commodities prices have risen sharply. Global crude prices at one point touched multi-decade highs, with benchmark crude futures above USD 100 per barrel.

During the meeting, Georgieva highlighted India's well-targeted policy mix that has helped the Indian economy remain resilient even with a limited fiscal space.

"During her conversation with Ms @KGeorgieva, FM Smt @nsitharaman stressed on the Government of India's commitment to supporting economic growth through #CapitalExpenditure," the ministry tweeted.

"FM Smt @nsitharaman underlined that India's accommodative fiscal stance accompanied by major structural reforms and strong monetary policies have helped in India's post-pandemic #EconomicRecovery," it said.

Georgieva congratulated India on its successful vaccination programme to control the spread of the COVID-19.

"She also appreciated India for extending #COVID19 relief support to other vulnerable countries," the Finance Ministry tweeted.

Georgieva also appreciated India's help to Sri Lanka in tackling its economic crises and assured that the IMF would continue to actively engage with Sri Lanka.

Sri Lanka is hit by its worst economic crisis since independence in 1948 and is on the brink of its first debt default

India recently announced to extend a USD 1 billion line of credit to Sri Lanka as part of its financial assistance to the country to deal with the economic crisis following a previous USD 500 billion line of credit in February to help it purchase petroleum products.