The International Monetary Fund calls for support for poorer countries facing high inflation and war spillovers

The head of the International Monetary Fund says that low-income countries spend up to 14 percent of their income on debt repayment.

The head of the International Monetary Fund said: The International Monetary Fund (IMF) has a responsibility to help poorer countries that are struggling with increasing debt, high inflation and price shocks caused by war spillovers.

Speaking at the end of the IMF's annual meeting in Bangkok on Saturday, International Monetary Fund Managing Director Kristalina Georgieva said talks with global policymakers showed both "optimism and concern".

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"Optimism comes from the resilience of the global economy, the promise of artificial intelligence, the dynamism of Asia," Georgieva told reporters. But artificial intelligence is also recognized as a source of concern, and so are inflation, high debt levels, war, climate risks.

Vulnerable countries are missing out on the AI investment boom that is fueling growth in wealthier countries, while dealing with higher borrowing costs, Georgieva said.

Higher global interest rates mean low-income countries are now spending 8 to 14 percent of their income on debt repayments, higher than in previous years, he said.

"I can tell you that people everywhere, especially in poorer countries, don't like inflation. Inflation is like a tax on the poor," Georgieva said.

These warnings came as low-income and oil-importing countries were hit hardest by rising global energy costs. Prices have risen since February when the United States and Israel launched a war against Iran that led to retaliatory strikes in the Middle East and disrupted oil and gas flows.

Saudi Finance Minister and Chairman of the International Monetary and Financial Committee (IMFC) Mohammad Al-Jeddan said in a statement: The escalation of conflicts and trade tensions can disrupt important trade routes, intensify the price pressures of goods, including refined energy products, and worsen energy and food security.

The International Monetary Fund is the main steering committee of the 191-member crisis lender.

Georgieva said her organization has a responsibility to assist countries in debt restructuring if needed, to help mobilize domestic resources, secure international financing and create conditions for private investment.

Such countries should set spending targets that prioritize growth and protect the most vulnerable, he said, adding that the IMF is "relentlessly pursuing more resources for low-income countries."

"When we do what we do best, it translates into a better life for people," he said.

Georgieva also said the IMF plans to support Iraq "very firmly" with the requested loan program while talks with Lebanese authorities progress.

"We will get both money and political support to Iraq," he said. Regarding Lebanon, we are in very intensive discussions with the Lebanese authorities. We have made significant progress on the program. We still have a little more work to do. Together, and I'm sure we will succeed."