Finance Minister Calls for Enhanced Role of Development Banks in Crisis Management

Washington: International development banks should assume a more significant role in managing global crises, Finance Minister Mihály Varga stated during a meeting of G20 finance ministers and central bank governors. The meeting, held in Washington, saw the endorsement of a three-pillar proposal aimed at strengthening the involvement of these banks in crisis management.

According to About Hungary, Minister Varga, representing the presidency of the Council of the European Union, emphasized the need for multilateral development banks to expand their financing capacity while maintaining long-term financial sustainability. The proposal also calls for making financing and consulting services more accessible and enhancing the mobilization of private capital and national resources. The third pillar focuses on improving efficiency by increasing geographical distribution and deepening the understanding of local needs.

The G20 participants also addressed the various challenges facing the global financial sector. Minis
ter Varga highlighted the resilience of international financial systems, even under the strain of the pandemic and geopolitical tensions, such as the war in Ukraine. He underscored the importance of cross-border payment development, the regulation of digital innovations, and financial integration in preserving this stability.

Additionally, Varga noted the G20’s commitment to developing a framework for the use of cryptocurrencies, reflecting the group’s proactive approach to emerging financial technologies.