Kristalina Georgieva, the managing director of the International Monetary Fund (IMF), has urged the international community to enhance the efficiency and speed of debt settlement for Ghana and other developing nations.
She claims that it is now essential to form a Ghanaian creditor committee, finish Zambia's debt restructuring, and move on with Ethiopian negotiations.
During the inaugural meeting of the G20 Finance Ministers and Central Bank Governors in Bengaluru, India, Ms. Georgieva noted that too many people in too many nations are having difficulty getting by, despite predictions that global growth would decelerate in 2023 and remain below its historical average.
Thus, the international community must work together to develop solutions for the weakest members of our global family. This necessitates taking swift action to fortify the international financial architecture, particularly in the areas of debt relief and expanding the financial safety net globally, she said.
The IMF chief said, "Shocks resulting from COVID-19 and Russia's conflict against Ukraine have further increased sovereign debt vulnerabilities, which were already high before to the outbreak.
She emphasised that this was especially true for low-income and emerging nations, where there is little room for policymaking and a great need for growth.
She cited the G20's establishment of the Debt Service Suspension Initiative (DSSI) and the Common Framework (CF) for debt settlement as having accomplished this in 2020.
Since then, the CF has provided Chad with a debt operation. The IMF Chief emphasised that it is now essential to finish Zambia's debt restructuring, form a creditor committee for Ghana, and progress cooperation with Ethiopia.
However, Ms. Georgieva pointed out that both nations covered by the CF and those not, such as Sri Lanka and Suriname, require procedures that are more predictable, fast, and organised.
This means that we must improve our communication and cooperation on debt-related concerns. The new Global Sovereign Debt Roundtable (GSDR) was created with this objective in mind: to bring together public, private, and new creditors with debtor nations to address important topics that might help the debt resolution process.
We began the GSDR under the auspices of India's G20 presidency last week at the deputy level, and we followed that up with an active and fruitful principals meeting earlier today," she said.
She said, "In our role at the center of the global financial safety net, the IMF has been ramping up lending as our members tackle the severe economic difficulties that the previous few years have brought." We will further expand on this conversation during the World Bank-IMF Spring Meetings in April."
Since the start of the epidemic, the IMF has sanctioned $272 billion in financing for 94 countries, 57 of which are low-income nations, through our conventional loan facilities and emergency financing.
Also, we have increased our efforts to address the world food issue. Some nations, notably Malawi, Guinea, and Haiti, have benefitted from the IMF's new Food Shock Window, and more are anticipated to do so," she said.
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