Thank you, Co-Chairs,

The G77 and China appreciates the convening of this panel discussion on the reform of the international financial architecture and systemic issues.

First of all, the Group would like to reiterate that a necessary prerequisite to strengthen the global financial safety net is to ensure a fair and inclusive global economic governance, where developing countries' representation is enhanced along with their voting power in international financial institutions. We therefore insist that it is critical to restore basic votes back to 1/9 the total voting rights in the IMF and advance a comprehensive and successful World Bank shareholding review in 2025, in line with the Lima shareholding principles. The decision making processes of these institutions need to become more transparent and accountable, and their leadership needs to reflect geographical balance and merit.

Having said that, the Group once more appreciates the work of the cofacilitators in putting forward technically supported proposals to improve the financial safety net, enhancing the pool of resources, making it more resilient to shocks and recalibrating risk pricing. However, we remain deeply concerned that proposals coming from some of our development partners call for complete deletion of measures that could have a significant impact, affecting the chances of success of this Conference.

The G77 and China would like to emphasize that the global financial safety net needs to be expanded, it should take into account multidimensional vulnerability and needs to be more reliable to allow developing countries to expand their investment in their sustainable development.

Currently, developing countries lack a reliable mechanism to support their financial markets during major scale financial crises, a problem developed countries do not face as they have been able to rescue their markets with bilateral support provided among themselves. We therefore call for discussing an IMF multilateral swap line that can enhance the institution's role as a provider of insurance for developing countries' economies in need.

We have been also very clear about the need to better harness the potential of SDRs to address liquidity challenges. We are convinced that a playbook would be a step in the right direction to make the issuance of SDRs more efficient. We call for the voluntary rechanelling of 50% of current unused SDRs by developed countries to developing countries, building on the commitment of the Pact for the Future. We are also certain about the potential of SDRs to finance sustainable development initiatives in developing countries, which is why we are requesting a USD 300 billion annual issuance.

The very existence of the Poverty Reduction and Growth and the Resilience and Sustainability Trusts are good examples of putting SDRs to good use. However, existing conditionalities to access the funds, such as an upper credit tranche programme, are only limiting their capacity to support developing countries effectively where resources are needed the most.

Colleagues, effective financial regulation is at the center of all the measures we are discussing in the reform. We need to foster transparency, objectivity and accountability by all relevant actors in the financial system. The G77 and China expects that improving regulation of Credit Rating Agencies will be one of the breakthroughs of this Conference. An annual high-level meeting to ensure open and constructive dialogue with Member States will increase our chances to design appropriate regulation. We also need to take steps forward to improve credit-rating methodologies so that they are reflecting multidimensional risks and needs, as well as and efforts made by developing countries to contain their fiscal deficits. Therefore, the Group is asking to create stronger long-term ratings that recognize the positive implications of investment in sustainable development and resilience.

The G77 and China will remain open to engage in constructive conversations that allow us to find agreement on these and other issues related to this section, acknowledging the important role of the United Nations in global economic governance and its leadership in the sustainable development agenda.

I thank you.