WEBVTT - Bloomberg Businessweek Weekend - September 27th, 2024 0:00:02.440 --> 0:00:06.760 Bloomberg Audio Studios, Podcasts, radio news. 0:00:08.400 --> 0:00:12.799 This is Bloomberg business Week Inside from the reporters and 0:00:12.960 --> 0:00:16.520 editors who bring you America's most trusted business magazine, plus 0:00:16.600 --> 0:00:20.760 global business, finance and tech news. The Bloomberg Business Week 0:00:20.800 --> 0:00:25.720 Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio. 0:00:26.760 --> 0:00:29.600 Hi, everyone, Welcome to the Bloomberg Business Week Weekend podcast. 0:00:29.880 --> 0:00:32.320 Tim is out this week with me in from London. 0:00:32.720 --> 0:00:35.360 Lovely to have Stephen Carroll, He's co host of Bloomberg 0:00:35.400 --> 0:00:37.680 day Break Europe on Bloomberg Radio. Really nice to have 0:00:37.720 --> 0:00:39.720 you here in a week having so much. 0:00:39.640 --> 0:00:40.199 Was going on. 0:00:40.280 --> 0:00:43.080 Gladly and I from important events. 0:00:42.640 --> 0:00:46.000 He does, he does, so I hear well our backdrop 0:00:46.159 --> 0:00:49.280 on this busy past week. Gridlock in New York City, 0:00:49.440 --> 0:00:52.280 no doubt about that. This as the seventy ninth Annual 0:00:52.320 --> 0:00:55.480 youn General Assembly was in session, coinciding with New York 0:00:55.520 --> 0:00:58.840 City's annual Climate Week summit with global leaders in town. 0:00:58.840 --> 0:01:01.520 Bloomberg and Bloomberg for Lanthropy is both founded by Michael R. 0:01:01.560 --> 0:01:05.360 Bloomberg hosted the Bloomberg Global Business Form an Earthshot Prize 0:01:05.360 --> 0:01:09.039 Innovation Summit at the Plaza Hotel, which we did a 0:01:09.160 --> 0:01:09.920 live broadcast. 0:01:10.000 --> 0:01:10.160 Yeah. 0:01:10.200 --> 0:01:11.920 Over the next two hours will bring you some of 0:01:11.920 --> 0:01:15.400 our conversations and highlights from the event. These are discussions 0:01:15.400 --> 0:01:18.880 focusing on innovation and opportunity in the climate space, as 0:01:18.880 --> 0:01:21.760 well as tracking where the investment is going and how 0:01:21.760 --> 0:01:24.280 it all fits into the state of the global economy. 0:01:24.440 --> 0:01:26.720 On that, we have an update on Latin America and 0:01:26.760 --> 0:01:30.480 the Caribbean with Inter American Development Banks Jordan Schwartz, and 0:01:30.600 --> 0:01:32.720 the latest on the surge in wind power with the 0:01:32.760 --> 0:01:36.440 CEO of the Global Wind Energy Council Bend Backwell. 0:01:36.080 --> 0:01:39.240 And later on the Australian billionaire who is spending billions 0:01:39.280 --> 0:01:42.840 on EV trucks. First up this hour. As Managing Director 0:01:42.880 --> 0:01:46.919 of the International Monetary Fund, Kristallina Giorgeva is a leader 0:01:47.000 --> 0:01:50.040 on the world economy, its growth, it stresses, and its 0:01:50.080 --> 0:01:54.080 complicated relationships and so coming off of the Federal Reserves 0:01:54.120 --> 0:01:57.560 halfpoint interest rate cut decision last week, she told us 0:01:57.560 --> 0:02:00.160 the Fed broadly got it right. Here's more from the 0:02:00.160 --> 0:02:02.440 Bloomberg Global Business Forum in New York. 0:02:02.600 --> 0:02:08.400 Oh The global economy has been remarkably resilient despite the 0:02:08.480 --> 0:02:12.760 horrendous shocks of the last years, despite of interest rates 0:02:13.440 --> 0:02:18.640 fighting inflation. For the last more than a year, we 0:02:18.800 --> 0:02:23.720 have seen global rock growth holding. We project three point 0:02:23.760 --> 0:02:27.800 two percent this year three point two percent next year. 0:02:28.520 --> 0:02:35.280 The two engines of this performance US economy and most 0:02:35.320 --> 0:02:41.280 of Emerging Asia, especially India. Assian We are now seeing 0:02:41.480 --> 0:02:47.960 interest rates in most economy is going down, and rightly so, 0:02:48.800 --> 0:02:53.440 because we also see the price being paid for interest 0:02:53.560 --> 0:03:01.600 rates being high. It is affecting somewhat prospects for growth 0:03:02.200 --> 0:03:08.680 in major economies. Two very important points for your audience. 0:03:08.919 --> 0:03:16.000 Number One, yes, growth is holding, but by historic standards 0:03:16.400 --> 0:03:21.640 it is not high enough to retain good prospects for 0:03:21.720 --> 0:03:27.919 our economies before the pandemic average growth three point eight percent. Two, 0:03:28.400 --> 0:03:32.799 we also have very high debt levels, and that combination 0:03:33.000 --> 0:03:38.800 of slow growth and high debt is something that we 0:03:39.040 --> 0:03:42.560 at the Fund worry about. What we want to see 0:03:42.920 --> 0:03:47.880 is countries taking seriously the importance. 0:03:47.320 --> 0:03:49.800 Of fiscal prudence. 0:03:50.480 --> 0:03:54.600 So the center banks have done their job, they fought inflation. 0:03:54.760 --> 0:03:58.080 Inflation is going down, rates are going down. We need 0:03:58.080 --> 0:04:02.880 the fiscal site to be equally committed, and of course 0:04:02.920 --> 0:04:06.240 we want to see more attention as to what drives growth. 0:04:06.880 --> 0:04:08.760 I want to go back to inflation now with the 0:04:08.800 --> 0:04:12.120 Fed finally making that big move last week that have 0:04:12.240 --> 0:04:16.680 a point card. Inflation defeated, mission accomplished, done or would 0:04:16.720 --> 0:04:19.240 you say not necessarily yet watch it. 0:04:20.279 --> 0:04:22.279 Yes, we are in a very good place. We have 0:04:22.440 --> 0:04:27.520 been predicting soft lending. We would see inflation down and 0:04:27.640 --> 0:04:32.080 growth still remaining firmly in positive territory. This is where 0:04:32.120 --> 0:04:36.760 we are. We know that in the services inflation is 0:04:36.800 --> 0:04:39.720 still flaring a little bit more so the FAT is 0:04:39.760 --> 0:04:45.160 going to watch it. But broadly we think that the. 0:04:45.120 --> 0:04:46.400 FED got it right. 0:04:46.440 --> 0:04:52.200 And we would see how that evolves in the next 0:04:53.440 --> 0:04:57.840 meeting of the FAT. Not to exclude that could be 0:04:58.800 --> 0:05:04.400 more cuts. But again, why is the FAT successful Because 0:05:04.480 --> 0:05:08.559 it is data driven, so they would watch incommun data 0:05:09.440 --> 0:05:10.120 very carefully. 0:05:11.320 --> 0:05:13.880 I take note that you're worried about the fiscal side, though, 0:05:14.000 --> 0:05:15.640 how big a risk is what you're hearing in the 0:05:15.760 --> 0:05:18.240 US election campaign that's going to have a huge impact 0:05:18.320 --> 0:05:19.599 on US RISCO policy. 0:05:19.839 --> 0:05:22.520 Look, I mean, let's first give credit where credit is due. 0:05:22.720 --> 0:05:25.039 The US has helped. 0:05:24.720 --> 0:05:28.440 The world economy to stay afloat in this very difficult time. 0:05:29.000 --> 0:05:32.360 So when we think about the response to the pandemic, 0:05:32.400 --> 0:05:37.159 the response to the war in Ukraine, these spike of 0:05:37.320 --> 0:05:41.760 energy and food prices. Having the US economy to perk 0:05:42.440 --> 0:05:45.760 in the way it did a very good news for everybody. 0:05:46.480 --> 0:05:50.800 This being said, we have to all think of the 0:05:51.400 --> 0:05:55.039 beast that may be around the corner. What we learned 0:05:55.080 --> 0:05:57.680 in these last years is that we are in a 0:05:57.760 --> 0:06:04.599 more shock front world and having fiscal space to act 0:06:05.040 --> 0:06:09.000 should that become necessary. Is a message we send to 0:06:09.520 --> 0:06:11.600 all our members is. 0:06:11.520 --> 0:06:15.200 That our number one risk the fiscal position of the 0:06:15.320 --> 0:06:17.280 United States and other well, I. 0:06:17.200 --> 0:06:22.640 Mean, the United States has the ability to fund itself 0:06:23.400 --> 0:06:29.280 in a fairly comfortable manner. What we see in some 0:06:29.360 --> 0:06:35.360 other countries they don't quite have that privilege. So the 0:06:35.400 --> 0:06:41.080 pressure for imminent action, of course, differs in different places. 0:06:41.440 --> 0:06:45.840 We do we have been saying that make sure that 0:06:46.279 --> 0:06:57.279 you are not pushing prices up by getting more money 0:06:57.640 --> 0:07:01.200 into the economy. The economy the economy can handle, so 0:07:01.279 --> 0:07:01.800 be careful. 0:07:01.839 --> 0:07:04.880 But you don't worry about the US Federal Bank in 0:07:04.920 --> 0:07:07.400 particular that by that half a point content there maybe 0:07:07.440 --> 0:07:10.280 are putting a little bit more stimulus when the economy 0:07:10.280 --> 0:07:11.440 seems to be doing well. 0:07:11.520 --> 0:07:15.160 Right, there's growth, Yeah, the economy is doing well. Haber 0:07:15.200 --> 0:07:16.600 markets still as. 0:07:16.480 --> 0:07:19.680 You actually are reporting in your program that consumers seem 0:07:19.760 --> 0:07:22.200 to be saying, well, you're not as confident as we 0:07:22.200 --> 0:07:25.920 were before. Let's remember that when you have interest rates 0:07:25.960 --> 0:07:29.600 so high, that has impact, and it is the desired 0:07:29.680 --> 0:07:34.720 impact to bring inflation down, and the accompany not so 0:07:34.920 --> 0:07:39.160 desired to impact on consumer and business confidence. So my 0:07:40.640 --> 0:07:44.760 message is the following. We have to all be very 0:07:44.800 --> 0:07:49.800 watchful of whether there is risk of inflation to flare 0:07:50.000 --> 0:07:56.200 up again. What is happening around the world. So we 0:07:56.400 --> 0:07:59.120 are not I mean, as the movie would go, we 0:07:59.160 --> 0:08:03.000 are not in Kansas anymore. We're in a different world, 0:08:03.360 --> 0:08:10.080 more shockpron more unpredictable. Keep your powder dry, don't use 0:08:10.120 --> 0:08:12.040 all of it at once. 0:08:12.680 --> 0:08:15.320 One of the shocks that did open the global economy 0:08:15.400 --> 0:08:17.360 is Russia has wore in Ukraine and the Fund was 0:08:17.360 --> 0:08:22.640 criticized recently for planning to restart annual economic consultations with Russia. 0:08:23.080 --> 0:08:24.040 Whose idea was that. 0:08:24.320 --> 0:08:27.560 Look, I mean, we do have an articles of agreement 0:08:27.800 --> 0:08:30.680 and they say you have to have regular consultations. The 0:08:30.720 --> 0:08:33.800 Russian case is a very complex case. This is not 0:08:34.040 --> 0:08:38.760 your normal article for so as you know, we have 0:08:40.360 --> 0:08:43.120 said we need to see whether we have all the 0:08:43.200 --> 0:08:45.400 data we need to see whether we are ready, and 0:08:46.280 --> 0:08:47.439 at this moment. 0:08:47.520 --> 0:08:47.880 We are not. 0:08:48.200 --> 0:08:51.640 What does that damage the Fund's reputation having that sort 0:08:51.679 --> 0:08:53.920 of confusion around starting and then stopping. 0:08:54.320 --> 0:08:58.520 I think that the Fund has been incredibly strong over 0:08:58.600 --> 0:09:02.520 this period of time of shock upon shock upon shock. 0:09:03.360 --> 0:09:09.400 We have supplied liquidity to countries that need it. We 0:09:09.600 --> 0:09:12.920 boosted reserves for countries so they can go through these shocks. 0:09:12.960 --> 0:09:16.320 And I think our reputation speaks for itself by the 0:09:16.360 --> 0:09:20.640 fact that our membership is increasing. We just got our 0:09:20.720 --> 0:09:25.400 one hundred ninety first member, the tiny country of Liechtenstein 0:09:26.120 --> 0:09:30.240 joining us. Why because we are an anchor in a 0:09:30.320 --> 0:09:35.600 sea of trouble. So I would argue that when you 0:09:35.640 --> 0:09:39.080 look at the Fund, you have a credible institution. We 0:09:39.200 --> 0:09:42.920 have come true. We help the world economy to steer 0:09:43.040 --> 0:09:46.360 through very difficult times. We will continue to do that. 0:09:46.800 --> 0:09:50.920 But is it tricky considering the war and in terms 0:09:50.960 --> 0:09:54.080 of advising Russia, like how to survive through this when 0:09:54.360 --> 0:09:55.880 most of the developed world, as you. 0:09:55.880 --> 0:10:01.360 Now of course, cities as a horrible war. Heart bleeds for. 0:10:01.400 --> 0:10:07.080 The people in Ukraine that have been so harshly hit 0:10:08.080 --> 0:10:13.640 by Russia's war. I want to see the war ending 0:10:14.400 --> 0:10:17.600 for the sake of Ukraine and for the sake of 0:10:17.640 --> 0:10:21.840 the global economy. It was incredibly damaging to the whole world. 0:10:23.040 --> 0:10:27.199 When we think of this, is it is it possible 0:10:27.240 --> 0:10:32.599 to do Article four without enhancing Russia's capabilities? We have 0:10:32.720 --> 0:10:34.280 to sit back and think twice. 0:10:35.040 --> 0:10:36.280 And this is what we're. 0:10:36.120 --> 0:10:37.640 Doing right now. 0:10:37.480 --> 0:10:39.320 How long will you wait before that is. 0:10:39.640 --> 0:10:41.680 And why are some of our members, I mean, this 0:10:41.800 --> 0:10:44.280 is our the levels. Some of our members are saying, please, 0:10:44.520 --> 0:10:48.800 if you're the only institution, no treasure. Other members they're saying, 0:10:49.200 --> 0:10:51.240 you're the only institution that can come up with some 0:10:51.320 --> 0:10:55.920 credible assessment what is happening in Russia. So that is 0:10:55.960 --> 0:10:59.560 also something that is in the equation. But I'm telling 0:10:59.640 --> 0:11:05.640 you this is not an adventure we would take ever likely, 0:11:06.520 --> 0:11:11.800 and I care very deeply for the trust of my membership. 0:11:12.160 --> 0:11:16.359 We need to be there as an institution that holds 0:11:17.120 --> 0:11:20.480 strong in a world that has more trouble. 0:11:21.480 --> 0:11:23.920 I want to ask about Argentina because you guys have 0:11:24.000 --> 0:11:27.079 put in there are some complaints by the Argentinian president 0:11:27.480 --> 0:11:31.040 about the IMF negotiator. You put in a new negotiator, 0:11:31.040 --> 0:11:33.079 and we do wonder about, like, what does that signal 0:11:33.440 --> 0:11:37.240 to other countries when they're maybe not happy with negotiations 0:11:37.320 --> 0:11:38.720 or policies or the imafs. 0:11:38.800 --> 0:11:44.760 So the answer is very simple. It is the negotiator 0:11:44.840 --> 0:11:51.080 himself who found the situation being propagated. Yeah, how do 0:11:51.160 --> 0:11:54.640 you negotiate with somebody who does not trust you at all? 0:11:55.160 --> 0:11:59.680 So it was that negotiator that looked into the situation 0:11:59.800 --> 0:12:03.400 in Argentina. Does Argentina needs help from the fund? 0:12:03.520 --> 0:12:03.800 Yes? 0:12:04.080 --> 0:12:05.320 Do they need our advice? 0:12:05.720 --> 0:12:06.040 Yes? 0:12:06.720 --> 0:12:10.080 Let me send somebody who the president would listen to. 0:12:10.960 --> 0:12:14.520 And I can tell you that that was a mature judgment, 0:12:14.600 --> 0:12:19.679 and I stand by this judgment of my staffer, great professional, 0:12:20.120 --> 0:12:26.520 great professional, Rodrigo Valdez. I admire him for the maturity 0:12:26.640 --> 0:12:28.400 it has shown in that environment. 0:12:28.600 --> 0:12:31.559 And are you hopeful for improved relationships with Argentina as 0:12:31.600 --> 0:12:34.600 a result of that change? Will things proceed more smoothly 0:12:34.640 --> 0:12:36.680 with the IMS relationship there Argentina? 0:12:37.080 --> 0:12:43.160 Argentina faces very very tough problems to solve, and I 0:12:43.200 --> 0:12:48.079 know that Argentina would only benefit of having the IMF 0:12:48.480 --> 0:12:55.280 analytically to stand by Argentina and financially to stand by Argentina. 0:12:55.800 --> 0:12:57.280 And I'm justire, I don't know if you realize it, 0:12:57.280 --> 0:13:01.040 but there's an election going on in the United States. 0:13:01.520 --> 0:13:02.400 I am curious. 0:13:02.440 --> 0:13:05.440 You've got two candidates with radically different positions on a 0:13:05.440 --> 0:13:08.560 lot of different issues, whether it's trade, immigration, the US's 0:13:08.600 --> 0:13:12.679 position on the global stage on economic policy. What's your 0:13:12.679 --> 0:13:15.360 advice for the next president of the United States. 0:13:15.520 --> 0:13:18.560 Look, I mean the elections in the United States. This 0:13:18.720 --> 0:13:22.760 is the choice of the American people. They make this choice, 0:13:22.920 --> 0:13:26.360 they have a president, and then this president sets up 0:13:26.360 --> 0:13:32.680 an agenda for the country. We are always there for 0:13:32.840 --> 0:13:36.640 our members to give them our best shot advice. 0:13:37.679 --> 0:13:40.960 So you remembers worried about the outcome of the US election. 0:13:41.360 --> 0:13:44.880 The whole of the membership is now facing a work 0:13:45.000 --> 0:13:50.120 in which sixty percent of people are going to the polls. Yeah, 0:13:50.559 --> 0:13:54.480 you ask different countries. They have different worries. But I 0:13:54.640 --> 0:13:57.960 also very amazing stories that I hope you would tell. 0:13:58.320 --> 0:14:03.200 I was with Professor use of Bangladesh. Here is a 0:14:03.280 --> 0:14:07.200 country in which the youth of the country said, no 0:14:07.360 --> 0:14:11.920 more corruption, We want to turn a page. And for 0:14:12.040 --> 0:14:17.319 us supporting this country to turn that page to get 0:14:17.480 --> 0:14:22.320 a good growth and good prospects for their people amazing. 0:14:22.600 --> 0:14:26.280 So listening to the younger population always important. Chris allnigior Gava, 0:14:26.360 --> 0:14:28.800 thank you so much. We so appreciate your time here. 0:14:28.880 --> 0:14:31.800 Managing director of course at the International Monetary Thought, thank 0:14:31.800 --> 0:14:32.400 you so much. 0:14:36.800 --> 0:14:40.360 You're listening to the Bloomberg Business Week podcast. Catch us 0:14:40.400 --> 0:14:43.640 live weekday afternoons from two to five pm Eastern Listen 0:14:43.680 --> 0:14:45.840 on Apple car Play and and Brote Auto with a 0:14:45.840 --> 0:14:49.240 Bloomberg Business app, or want us live on YouTube. 0:14:49.800 --> 0:14:52.280 We are very global all this week here on Bloomberg 0:14:52.320 --> 0:14:54.680 Business Week, and we've had this week the opportunity to 0:14:54.680 --> 0:14:57.840 focus on economic issues in different regions of the world 0:14:57.920 --> 0:15:01.320 and how the changing climate is altering many country these trajectories. Well, 0:15:01.320 --> 0:15:05.240 the African Development Bank finances projects across the continent in 0:15:05.320 --> 0:15:09.600 areas including agriculture, energy, also the private sector development, and 0:15:09.640 --> 0:15:11.800 we know those African countries, something we talk about a 0:15:11.800 --> 0:15:14.160 lot here at Bloomberg, are among those most affected by 0:15:14.200 --> 0:15:16.280 climate change. So that is some of what we wanted 0:15:16.320 --> 0:15:17.880 to talk about here on Business Week. 0:15:17.960 --> 0:15:19.960 Yeah, indeed, to discuss that. We're joined in the Interactive 0:15:19.960 --> 0:15:22.320 Broker studio by doctor a Can wimen at Asena, who 0:15:22.320 --> 0:15:24.080 is the President of the African Development Bank. Thank you 0:15:24.160 --> 0:15:26.200 very much to see We've also got Blomberg Chief Africa 0:15:26.480 --> 0:15:29.560 correspondent Jennifer Sabasagie with us in Studio two to join 0:15:29.600 --> 0:15:31.600 the conversation. Doctor Absina, Welcome to New York. 0:15:31.600 --> 0:15:32.880 Great to have here. 0:15:33.000 --> 0:15:36.680 You're here having conversations with global leaders for Climate Week 0:15:36.680 --> 0:15:38.280 and you and General Assembly. What are you trying to 0:15:38.320 --> 0:15:39.040 get out of this week? 0:15:39.160 --> 0:15:40.720 Well, first and foremost is just for bakeshore. 0:15:40.760 --> 0:15:43.080 Africa's is used on at the top of the agenda 0:15:43.200 --> 0:15:46.720 because when you talk about climate change, Africa only Accouncil 0:15:46.760 --> 0:15:47.120 no more. 0:15:47.000 --> 0:15:49.080 Than three percent of emissions. 0:15:49.240 --> 0:15:52.280 But actually so for us to proportionately from a negative consequences, 0:15:52.320 --> 0:15:55.040 it loses fight seven to fifteen billion dollars a year, 0:15:55.360 --> 0:15:57.560 and the current trend continues, that's going to rise to 0:15:57.640 --> 0:16:00.160 fifty billion dollars a year. But it's not getting the 0:16:00.160 --> 0:16:02.920 amount of financing that it needs. You know, Africa needs 0:16:03.000 --> 0:16:05.760 roughly about two seventy seven billion dollars a year to 0:16:05.800 --> 0:16:07.720 tackle climate change, but it gets to know what a 0:16:07.840 --> 0:16:08.680 thirty billion dollars. 0:16:08.720 --> 0:16:09.800 It's a big gap there. 0:16:10.080 --> 0:16:12.160 So, but most of what is needed there it's really 0:16:12.160 --> 0:16:14.600 to adapt to climate change. It's not so much of mitigation, 0:16:14.920 --> 0:16:17.400 but it's adapting to climate change. Other things that I 0:16:17.440 --> 0:16:19.640 wanted to get out of. Most of this is actually 0:16:19.640 --> 0:16:22.560 how we tackle Africa's debt issues, because at the end 0:16:22.560 --> 0:16:25.200 of the day, you know, you can run up a 0:16:25.280 --> 0:16:27.880 heel if you're carrying a back back of sand, and 0:16:27.960 --> 0:16:30.760 so you can have development in which you have highly 0:16:30.760 --> 0:16:32.760 in deatd countries. And so we have to make sure 0:16:32.800 --> 0:16:36.160 that African countries facing a lot of challenges in terms 0:16:36.160 --> 0:16:40.080 of climate, in terms of also conflict, also in terms 0:16:40.120 --> 0:16:43.920 of high inflation, and strength in fiscal space, that they 0:16:43.920 --> 0:16:45.560 have the space they need to be able to invest 0:16:45.560 --> 0:16:48.800 in education, health, water, sanitation, gals, education and all of 0:16:48.840 --> 0:16:51.560 those things. So dead climate for me a very very 0:16:51.960 --> 0:16:53.800 important part of my conversation here this. 0:16:53.760 --> 0:16:56.200 Week, and doctor Orgerstina, I mean part of that. I 0:16:56.240 --> 0:16:58.280 want to start with climate change, maybe because you have 0:16:58.400 --> 0:17:01.560 talked a lot about in particular the IMS special drawing 0:17:01.640 --> 0:17:05.760 rights and channeling more of those towards addressing climate change 0:17:05.760 --> 0:17:08.400 on the continent. Where is the progress on that? Did 0:17:08.400 --> 0:17:10.640 you make any progress this week while here in New York? 0:17:10.840 --> 0:17:13.120 Well, actually, just to think about the speciat of doing 0:17:13.200 --> 0:17:16.160 rights at the IMF. You know, when we started, everybody 0:17:16.160 --> 0:17:18.879 for well, sers were things you put on the balance 0:17:18.880 --> 0:17:22.399 sheets essentially as reserve assets of central banks. But we 0:17:22.480 --> 0:17:25.960 felt that actually these assets were actually simply latent assets 0:17:26.240 --> 0:17:28.840 that I was convinced that we can actually do better 0:17:29.119 --> 0:17:32.520 in terms of seeing how we can turn those into 0:17:33.119 --> 0:17:35.320 assets that can lock a lot of capital through the 0:17:35.359 --> 0:17:38.159 most lateral development banks. And the model that we develop 0:17:38.200 --> 0:17:40.680 basically was, you know, to see, okay, if you actually 0:17:40.760 --> 0:17:43.639 reachannel the SDRs to us as strip or air rated 0:17:43.680 --> 0:17:47.880 financial institutions, that's actually a hybrid capital that we can 0:17:48.000 --> 0:17:51.040 use and say perpetual in that stage on a balance sheet. 0:17:51.160 --> 0:17:53.240 So we can actually leverage now four times, it can 0:17:53.280 --> 0:17:56.880 even go to photo eight times. And so we're very delighted, 0:17:56.920 --> 0:18:00.280 myself and the president of Inter American Development Bank. We 0:18:00.320 --> 0:18:03.320 walk together very collaboratively to solve some of the technical 0:18:03.600 --> 0:18:06.520 So there are some technical issues about whether what's the 0:18:06.560 --> 0:18:08.960 reserve assets status of it and if you want to 0:18:09.000 --> 0:18:10.719 collect it back, how can you get it back? 0:18:10.800 --> 0:18:12.560 So we had to deal with some technical issues. 0:18:12.720 --> 0:18:15.000 We solve all those technical issues, and I was delighted 0:18:15.280 --> 0:18:20.040 that the IMA board actually approved twenty billion dollars of 0:18:20.280 --> 0:18:22.720 SEIS to be do channel through the most lateral development 0:18:22.800 --> 0:18:25.840 banks as hybrid capital. Now, now the issue is now, 0:18:25.880 --> 0:18:28.480 how do we get that money? To get all that 0:18:28.560 --> 0:18:31.920 money out, yeah, exactly. You know, we had to actually 0:18:31.960 --> 0:18:35.560 put together a group of five We need five SDI 0:18:35.680 --> 0:18:39.480 rich countries that will agree to rechannel that through the 0:18:39.800 --> 0:18:43.879 African Development Bank and the Inter American Development Bank. But 0:18:43.920 --> 0:18:45.960 also we have to make sure we have a group 0:18:46.000 --> 0:18:48.480 of others that are in Europe. For example, European countries 0:18:48.520 --> 0:18:52.000 can't do it because of restrictions by the European Central 0:18:52.040 --> 0:18:54.879 Bank on monetary policy outside of the EU and so, 0:18:55.000 --> 0:18:57.879 but we set up a very nifty structure which is 0:18:57.880 --> 0:19:01.640 called Liquidity Support Agreement, which they can just essentially guarantee 0:19:01.680 --> 0:19:03.880 those that have given it to you. Okay, that's still allowed. 0:19:04.160 --> 0:19:06.560 So that's where we are. We're making progress in terms 0:19:06.560 --> 0:19:08.680 of the countries. We're talking to them, and I'm hoping 0:19:08.720 --> 0:19:10.439 that you know, by the time we do G twenty, 0:19:10.640 --> 0:19:13.560 we'll have gone along way in making sure that way or. 0:19:13.560 --> 0:19:15.199 Will you actually have access to the funds? 0:19:15.240 --> 0:19:17.439 Well, actually, you know the long ways to get access 0:19:17.440 --> 0:19:18.960 to the funds, so which means there has to be 0:19:19.000 --> 0:19:21.600 agreement that that thing. It's not just easy just like 0:19:21.720 --> 0:19:23.919 give it to you. The legal things they have to 0:19:23.920 --> 0:19:25.679 go through in their countries to make sure that that 0:19:25.720 --> 0:19:26.359 gets done. 0:19:26.560 --> 0:19:29.040 So we we know. 0:19:29.000 --> 0:19:33.000 That President Lula as the presidency of the G twenty, 0:19:33.040 --> 0:19:36.320 as I spoke at the event just yesterday, that the 0:19:36.440 --> 0:19:40.560 stars US Okay for hybrid capital and getting it out 0:19:40.600 --> 0:19:43.359 to US is top on the agenda for G twenty. 0:19:43.400 --> 0:19:45.880 This is something that's I mean, we're deep in the weeds. 0:19:45.680 --> 0:19:49.560 Of international financial machinery here and had the money we 0:19:49.640 --> 0:19:52.280 like to do public This is something you know, I 0:19:52.320 --> 0:19:53.960 was at the EU African sulmost two and a half 0:19:54.080 --> 0:19:56.800 years ago when this idea was sort of advanced to 0:19:56.840 --> 0:19:59.320 a level where the reallocation would be able to happen. 0:20:00.000 --> 0:20:02.960 Political will was there from under a manual macro all 0:20:03.000 --> 0:20:05.880 the time. Is the political will still there to action 0:20:06.000 --> 0:20:08.600 this and to make sure that that transmission happens as 0:20:08.680 --> 0:20:09.600 quickly as possible. 0:20:09.680 --> 0:20:11.880 And remember there are two things we're talking about here. 0:20:11.920 --> 0:20:14.479 That is the one in which you you know, there 0:20:14.520 --> 0:20:16.359 was a request to make sure that some amount of 0:20:16.359 --> 0:20:21.280 money actually given okay through the IMF. You know three 0:20:21.359 --> 0:20:26.439 is property reduction and growth trust and residence and so 0:20:26.520 --> 0:20:29.439 salability trust. So that's that's money that's been given to 0:20:29.480 --> 0:20:32.120 IMF that's that's a different thing the one that I'm 0:20:32.160 --> 0:20:34.399 talking about, and that's going very well. I think they 0:20:34.440 --> 0:20:37.280 have probably one hundred billion dollars they're looking for of SDR. 0:20:37.640 --> 0:20:40.399 The one we're looking for is how the seas gets 0:20:40.440 --> 0:20:44.680 re channeled through the multilateral development so we can actually 0:20:44.760 --> 0:20:47.240 leverage that. You know, the thing is that you know 0:20:47.240 --> 0:20:49.600 when you when the money goes to im F. IMF 0:20:49.760 --> 0:20:53.480 is very very great, Crystalionam sister has been mostly helpful. 0:20:54.200 --> 0:20:56.760 But you know, for us, it's a it's a wonderful thing. 0:20:57.119 --> 0:20:59.080 You know, every dollar becomes forth, it's good for you 0:20:59.160 --> 0:21:01.159 as a shareholder, it's good for a tax for us, 0:21:01.160 --> 0:21:02.960 and you don't lose all the money. And so the 0:21:03.400 --> 0:21:05.840 progress has been made is phenomenal. Progress been made. But 0:21:05.920 --> 0:21:07.359 I think we just have to tie the knots and 0:21:07.400 --> 0:21:09.440 make sure the money actually comes home and we can 0:21:09.440 --> 0:21:11.000 continue to do. I just tell you one thing that 0:21:11.000 --> 0:21:13.040 I can do. I take the case of you know, 0:21:13.720 --> 0:21:15.600 our Jai Banker, President of the World Bank and I 0:21:15.640 --> 0:21:18.160 go together during the Spring meeting and we say, look, 0:21:18.359 --> 0:21:20.359 I said, we still have six hundred million Africans that 0:21:20.400 --> 0:21:21.760 don't have access to electricity. 0:21:22.119 --> 0:21:23.160 That doesn't make any sense. 0:21:23.200 --> 0:21:25.159 You can't grow in the dark, you can't industrialize in 0:21:25.200 --> 0:21:28.359 the dark, and you cannot be competitive without electricity. So 0:21:28.400 --> 0:21:29.639 I said, we're going to have to deal with it, 0:21:29.680 --> 0:21:32.160 and so we both agreed and we launched what's called 0:21:32.160 --> 0:21:34.960 Mission three hundred, which is to connect three hundred million 0:21:34.960 --> 0:21:38.919 Africans to electricity by twenty thirty. Now, universal access to 0:21:38.920 --> 0:21:42.040 electricity in Africa is going to require one ninety billion dollars, 0:21:42.359 --> 0:21:45.400 okay by year. Now here's where the SDR connection comes in. 0:21:45.680 --> 0:21:49.200 Because if you actually have fifty billion dollars of SDRs 0:21:49.200 --> 0:21:51.880 and you can leverage it at four times because they 0:21:51.880 --> 0:21:54.240 have r capital for you, that means that problem is 0:21:54.240 --> 0:21:55.440 solved once and for all. 0:21:55.640 --> 0:21:56.800 That is two hundred. 0:21:56.520 --> 0:21:58.560 Billion dollars at least to solve that problem. So that's 0:21:58.600 --> 0:22:02.159 the connection that we are trying to make. And President 0:22:02.200 --> 0:22:05.280 Lula as President of the G twenty it's also we've 0:22:05.320 --> 0:22:08.119 raised the issue also about he has something called the 0:22:08.119 --> 0:22:12.360 Global Alliance against Poverty and Hunger, okay, and so it's 0:22:12.359 --> 0:22:14.400 the same thing. You know, you use this se as 0:22:14.400 --> 0:22:17.840 well a lot massive amount of capital to deal with 0:22:17.880 --> 0:22:19.840 all the things. We say we have a part of 0:22:19.880 --> 0:22:20.359 the future. 0:22:20.640 --> 0:22:22.800 So do you hope you think that within six months 0:22:22.840 --> 0:22:25.080 twelve months you have that capital or that you can 0:22:25.119 --> 0:22:25.560