The International Monetary Fund, IMF, and World Bank are working together to accelerate debt restructuring for Ghana and other countries under the Group of Twenty, G20, Common Framework.
The IMF and the World Bank are bringing all relevant creditors and debtors together with promising signs.
Managing Director of IMF, Kristalina Georgieva, said this during a plenary meeting at the 2023 IMF/World Bank Group Annual Meetings in Marrakech, Morrocco.
She explained that the two global financial institutions are doing so because the progress of the Common Framework on delivering on debt restructurings has been slow.
The move is one of the supporting-pillars of the two-thronged no regrets actions for the next fifty years, captured in the Marrakech Principles, aimed at closing the divergent global income gap and generate job for all.
The two policy actions are – investment in strong economic foundations, and in global cooperation. More than half of low-income economies are at risk of debt distress, with about half of them facing default-like debt spreads.
On the Fund’s support beyond pushing for speedy debt negotiations, she said, about one trillion dollars in liquidity and financing has been provided to countries across the world since the COVID-19 pandemic period.
The President of the World Bank, Ajay Banga, said debt has increased throughout emerging markets, doubling in Africa and shackling countries to the ground just as they try to rise.
He said it has become important to reimagine partnerships with innovative plans to address the debt and climate change challenges for a habitable planet.
