Today, Congresswoman Maxine Waters (D-CA), Ranking Member of the House Financial Services Committee, and Congresswoman Joyce Beatty (D-OH), Ranking Member on the National Security, Illicit Finance, and International Financial Institutions Subcommittee, sent a letter to the International Monetary Fund (IMF) Managing Director Kristalina Georgieva, applauding the IMF’s recent efforts to strengthen governance and anti-corruption safeguards in its lending programs and encouraging the Fund to continue prioritizing these measures in countries facing debt challenges.

In the letter, the lawmakers highlight the growing recognition that corruption and financial mismanagement are key drivers of the unsustainable debt burdens in many developing economies. According to recent findings from the United Nations Conference on Trade and Development (UNCTAD), public debt in developing economies totaled $31 trillion in 2024, with 3.4 billion people living in countries that spend more on interest payments than on health care or education. These figures underscore the importance of ensuring that sovereign financing supports long-term economic stability and human development.

“According to the IMF’s findings, weak governance and loopholes enabling abuse and loss of financing are deeply intertwined with a country’s economic performance and ability to meet targets contained in IMF loan agreements. We commend the IMF’s recognition of corruption as a macro-critical challenge to the success of a loan program and support the Fund’s elevation of these matters in its engagement with member countries," wrote the lawmakers.

Especially now, as corruption and autocracy rise across the world, including within our own system in the United States, the lawmakers encourage the Fund to continue its efforts to reinforce clear standards for transparency and accountability, ensuring that its support strengthens institutions, improves public financial management, and addresses corruption at its source.

Waters and Beatty added, “To address these concerns, preventing the further spread of these crises and ensuring that its financing is used for its intended purposes, the IMF should redouble its efforts to guarantee that governments have in place, or are in the process of implementing, internationally recognized baseline measures of good governance and public financial management.”

In closing, the lawmakers outline several recommendations for strengthening IMF lending practices, including:

• Establishing clear criteria for identifying countries at risk of debt distress and requiring stronger governance commitments from governments seeking new IMF programs.
  
  
• Elevating financial integrity and governance issues in the IMF’s bilateral surveillance tools, including Article IV consultations and Financial Sector Assessment Programs (FSAPs).
  
  
• Incorporating concrete, time-bound governance reforms into loan agreements and holding governments accountable for implementation.
  
  
• Meaningfully engaging in-country experts, civil society, and other stakeholders throughout the full lifecycle of IMF programs, from design to monitoring and evaluation.
  

Read the full letter HERE.

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