The central bankers and finance ministers of 190 countries are currently meeting in Marrakesh for the annual meeting of the International Monetary Fund (IMF). In addition to Karin Keller-Sutter, Thomas Jordan is also there for Switzerland. SRF welcomed the President of the Swiss National Bank for an exclusive conversation.
Thomas Jordan
National Bank President
Open the people box. Close the people box
Thomas J. Jordan was born in Biel in 1963. He studied economics and business administration at the University of Bern. He was elected President of the SNB Board of Directors by the Federal Council in 2012.
SRF News: What are Switzerland’s priorities at the IMF meeting?
Thomas Jordan: Basically, we need sensible economic management in the different countries. Central banks must strive for price stability and governments must strive for the lowest possible budget deficit and sustainable debt. On the one hand, this allows growth, but on the other hand it also enables countries to react better to negative developments. As Switzerland, we also repeatedly point out how important it is that the IMF sticks to its core mandate. Only an IMF that focuses on this core mandate can deliver when it matters most.
IMF and Switzerland
Open box Close box
The main task of the IMF is to ensure the stability of the international financial and monetary system. Among other things, it provides financial aid in the form of loans to countries without currency reserves that are experiencing payment difficulties. Switzerland has been a member of the IMF since 1992. As head of a constituency group, she is permanently represented on the IMF Ministerial Board and the Executive Board. The Executive Board oversees the day-to-day operations of the IMF and approves policies for the institution’s operations. Switzerland has rotated the Executive Board seat with Poland since 2014. The group has a vote share of 2.89 percent, with Switzerland’s share being 1.21 percent.
For the first time in 50 years, the IMF’s annual meeting is taking place on the African continent. Climate change is a major issue locally – and not just since the recent natural disasters. Is the IMF well positioned to deal with this?
The International Monetary Fund must always be positioned to respond to all possible developments; be it a possible world recession, a pandemic or natural disasters. If a country is suddenly no longer able to pay interest on foreign currency loans or finance imports, it needs immediate support.
We have an interest in ensuring that the IMF’s direction remains as intended. The same applies to the World Bank.
The IMF’s primary task is to maintain international financial stability and support countries. It can also help in natural disasters. He has also recently had an instrument available, the Resilience and Sustainability Fund (RST), to motivate countries to restructure their economies so that they are better equipped to combat climate change.
Does Switzerland support such efforts?
We actually support all IMF initiatives. This was the case with the previous Poverty Reduction and Growth Fund, and we also plan to support the Resilience and Sustainability Fund. The issue is currently in parliament in Bern. We hope that the decision there will be made accordingly.
Does that mean you don’t share the criticism that the IMF is becoming more and more like a World Bank?
No. This RST fund is intended to be a catalyst to move in the right direction. The countries don’t just receive the money like that, they also have to do something for it. For example, they need to reduce fossil fuel subsidies to create the right incentives.
But of course: we have an interest in ensuring that the IMF’s direction remains as intended. The same applies to the World Bank. It’s always problematic when things mix together. Otherwise the IMF will suddenly no longer be able to fulfill its core task.
More about the IMF’s green fund
Is the IMF currently equipped with enough financial firepower?
That’s what I’m expecting. It remains to be seen whether one would like to combine the various existing pots and then use a quota to regulate who gets what. This is a discussion that we will have intensively here in Marrakesh.
Damian Rast conducted the interview.