Unlike the World Bank, the International Monetary Fund (IMF) does not provide loans for specific projects, IMF Deputy Managing Director Bo Li said at the event titled "Global Financial System: Expanding Finance for Climate Action" held on the sidelines of COP29, Report informs.
Bo Li stated that the IMF provides loans directly to the state budget to support reforms: "This includes green budgeting. Additionally, we support the development of green taxonomy in the financial sector and promote the development of climate data and climate reporting in the financial sector. We also support institutional reforms to promote climate action."
The IMF official noted that all these reforms create favorable conditions for private-sector investment in these countries.
Recently, the green taxonomy has been approved following a decision by the Central Bank of Azerbaijan Management Board.