Admittedly, financial instability is costly everywhere, including in EMEs. Indeed, financial stability is a necessary pre-condition for securing growth. Nevertheless, the cost-benefit calculus for EMEs of tighter regulation in order to safeguard financial stability can be quite different from that of advanced economies.
We believe it is critically important in these unprecedented times to demonstrate the unwavering support of the global community to the poorest countries and we look forward to the review by Executive Directors of the decision concerning the 2020 IDA transfer by December 2020. An extension of the Debt Service Suspension Initiative (DSSI) by 6 months is warranted by the continued liquidity pressures.