Let me welcome all of you to the Czech Republic and to Prague. My welcome extends to the official participants in the Annual Meeting of the International Monetary Fund and the World Bank Group, to all business people, bankers, economists, political scientists, environmentalists, thinkers, journalists, and, indeed, to all people of good will who have come here because this is an occasion to discuss and possibly also to help determine our common future. This country and its capital city are greatly honored to be the venue of this major assembly, which brings together thousands of people from all countries and continents—including persons wielding a far-reaching influence—in the very year that the commonly used chronology views as a turn of ages. For us it means an honor, a joy, as well as a great challenge, and a major commitment. I trust that Prague—hosting such a gathering of a truly global significance for the first time in more than a thousand years of its history—will offer a good environment for the deliberations and will be reflected favorably both in the memory of its participants and in the history of global cooperation. Surely this city possesses certain historical prerequisites. Over the course of centuries—among other things because of its geographical position in the center of Europe—it has witnessed not only confrontations and conflicts but also creative encounters, mutual respect, reciprocal influence, and cooperation among various cultures; various peoples and ethnic groups; and various spiritual currents and social movements. This pluralism has helped to shape its visage. It would be good if, after decades of oppression, of life without freedom, of bent backs, and of imposed isolation, we succeeded in rediscovering this ancient tradition and offered this city as a congenial setting for the world’s open debate about itself.
Meetings of the Joint Development Committee were held jointly with the Board of Governors of the Bank. The sessions of the Annual Meetings were held jointly with the Boards of Governors of the World Bank Group.
President Václav Havel, my fellow governors, your Excellencies, ladies and gentlemen, it is a great privilege to welcome you to the 2000 Annual Meetings of the International Monetary Fund and the World Bank Group. On behalf of the Boards of Governors, I would like to thank the government and people of the Czech Republic, and in particular, the people of Prague for their generous hospitality in this beautiful and historic city.
I am delighted to welcome you to these Annual Meetings of the International Monetary Fund and the World Bank Group. I extend a very special welcome to the delegation from San Marino, which becomes the Bank’s newest member country. I would like to thank the Chairman, Trevor Manuel, for his support and for his powerful speech. He has shown that rare combination of leadership in the fight for freedom and of sound economic management after freedom has been achieved. I would also like to thank the Governors and the Board of Executive Directors for their partnership in the work of the Bank.
International Monetary Fund. Legal Dept. and International Monetary Fund. Monetary and Capital Markets Department
This paper reports on progress in inclusion of enhanced collective action clauses and modified pari passu clauses as of end-October 2018. The report finds that enhanced CACs have now become the market standard, with only a few issuers standing out from the market trend. Around 88 percent of international sovereign bonds (in aggregate principal amount) issued since October 2014 in the main jurisdictions of New York and England include such clauses. The modified pari passu clause continues to be incorporated as a package with the enhanced CACs, with few exceptions. In line with findings in previous reports, the inclusion of enhanced CACs does not seem to have an observable pricing effect, according to either primary or secondary market data. The outstanding stock of international sovereign bonds without enhanced CACs remains high, with about 39 percent of the outstanding stock including enhanced CACs.
Mr. Chairman, Governors, ladies and gentlemen, it is with great pleasure that I join in welcoming you, on behalf of the IMF, to the 2000 Annual Meetings. We are privileged today to have President Havel with us. I would like to express my gratitude to him, to the government and people of the Czech Republic, and to the citizens of the beautiful and historic city of Prague, for their warm hospitality as hosts of these meetings.
I am honored here in the historic city of Prague to make this, the first report of the International Monetary and Financial Committee to the Annual Meeting, which on Sunday welcomed Horst Köhler, our new Managing Director; endorsed his vision of reform for the IMF; welcomed the strengthened partnership between the IMF and World Bank; devoted a special session led by Pavel Mertlik to the strength of transition economies; and resolved to send a message outward that the way forward for the global economy is not to retreat from global economic cooperation but to reform and modernize our institutions for global economic cooperation.
As Chairman of the Development Committee, I am pleased to report to you on the Committee’s work during the two meetings held this year. Let me first express, on behalf of the Committee, our great appreciation to Minister Tarrin Nimmanahaeminda, for his outstanding leadership and guidance of the Committee during the past two years. I am honored to have been chosen to succeed him as Chairman for the next year. The Committee’s agenda in these two meetings focussed on four basic areas that I would like to describe to you today.