Bank of Lithuania
2022-10-10
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Chairman of the Board of the Bank of Lithuania Gediminas Šimkus will participate in the annual meetings of the International Monetary Fund (IMF) and the World Bank in Washington. They will be focused on a coordinated response to challenges in the current difficult economic environment and on assistance to Ukraine and other vulnerable countries.

“The European Central Bank, the central banks of the United States and other countries of the Western world are raising interest rates in order to reduce inflation while supporting economic growth. During the meetings, the IMF will present its recommendations on the best course of action to achieve a more coordinated response on a global scale,” said Šimkus.

The key event during the meetings will be the plenary session of the International Monetary and Financial Committee of the IMF, where central bank governors and finance ministers from around the world will discuss the challenges facing the economy and will look for solutions on how to respond to them. In many countries, higher-than-expected inflation has prompted synchronised efforts by central banks to raise interest rates to control price growth. Reducing demand through monetary policy measures in the short term will have a dampening effect on economic growth, so states must be prepared for this.

Much attention will also be given to the IMF’s role in providing financial support to Ukraine and other low-income countries that are particularly vulnerable to the energy and food price shocks caused by Russia’s war on Ukraine. The Chairman of the Board of the Bank of Lithuania supports a stronger involvement of the IMF that would lead to a large-scale financial support programme for Ukraine as soon as possible. Representatives of the Ukrainian government have already called for such measures.

Bilateral and multilateral meetings will also take place during the visit. Šimkus will discuss current economic and financial issues with the IMF Chief Economist Pierre-Olivier Gourinch and is planning to meet with the Chairman of the Central Bank of India to discuss the prospects for developing bilateral relations in the field of finance. The agenda also includes meetings with the representative of Ukraine to the IMF, the heads of IMF missions to Ukraine, Russia and Lithuania, as well as with representatives of commercial banks. Traditionally, meetings will also be held with colleagues from the Nordic-Baltic countries. The annual meetings of the IMF and the World Bank will be held on 10–16 October. They are being held live and at full scale for the first time since the pandemic, with participants meeting in Washington.