Tensions emerge between US and IMF-World Bank

US Treasury’s Bessent urges IMF, World Bank to refocus on core mandate; Georgieva expresses willingness to engage

Tensions between the United States and international financial institutions came into sharp focus at the ongoing IMF-World Bank Spring Meetings in Washington, D.C., after US Treasury Secretary Scott Bessent publicly criticised the direction of both organisations, prompting a response the following day from IMF Managing Director Kristalina Georgieva.

On Wednesday, Bessent delivered a speech at the Institute of International Finance, located near the IMF and World Bank headquarters, where he remarked that both institutions had been"drifting from their core missions," resulting in a deviation from their primary goal of fostering international financial stability.

" We must make the IMF the IMF again. The IMF was once unwavering in its mission of promoting global monetary cooperation and financial stability. Now it devotes disproportionate time and resources to work on climate change, gender, and social issues," Bessent said, adding, "These issues are NOT the IMF mission.

He also criticised the World Bank, urging it to stop expecting "blank checks for vapid, buzzword-centric marketing accompanied by half-hearted commitments to reform," and called for the World Bank to refocus on its core mission and use its resources more efficiently.

Despite the criticism, Bessent emphasised that the Trump administration had no plans to withdraw from these organisations, stating: "'America First' does not mean America alone. On the contrary, it calls for deeper cooperation and mutual respect among partners."The following day, on April 24, Georgieva addressed the criticism during a press briefing on the global economic outlook at IMF headquarters during the Spring Meetings.

She expressed appreciation for Bessent’s "reiteration of the US commitment to the Fund and to its role."

"He raised a number of important issues and priorities for the institution that I look forward to discussing with the US authorities and the membership as a whole," she said

Responding to criticism of the Fund's focus on climate change, Georgieva said the Fund's members had different priorities, with some countries more affected by severe weather than others.

"People think that we have climate experts," she added, "We don't. That's not our job."

(2025/04/26-00:00)