United Nations (UN) Secretary-General António GuterresUN Jan 17UN Secretary General António Guterres, during the Davos World Economic Forum (WEF), called for reforming the global financial system so that it works for the benefit of all countries. «We need to reform the global financial system so that it works for all countries. More than eight out of ten dollars directed to recovery are being spent in developed countries,» Guterres said in a video message. According to him, low-income countries are at a very disadvantageous position. “They are experiencing the slowest growth in a generation and are struggling to bail out with their meager national budgets. Record inflation, shrinking fiscal space, high interest rates and soaring energy and food prices are affecting every corner of the world and blocking a recovery, especially in countries low- and middle-income countries,” the UN Secretary-General said. In his opinion, the global financial system failed low-income countries when they needed it most. “Global solidarity is missing. Countries are shackled by rising debt and extortionate interest rates. And many middle-income countries are not eligible for debt relief despite rising poverty, rising unemployment and loss of development. We need a global financial system that is up to the task «, — said Guterres. This means urgent debt restructuring and reform of the structure of long-term debt, said the Secretary General. «This means extending the general concept of debt management to middle-income countries and private sector creditors,» he said. Guterres also called for fighting corruption and illegal financial flows and to ensure the fair functioning of tax systems.
