Ghana, Sri Lanka have advanced with G20 Common Framework for Debt Treatments – IMF Boss

The Managing Director of the International Monetary Fund, Kristalina Georgieva, has hinted that Ghana and Sri Lanka have advanced with the G20 Common Framework for Debt Treatments.

This should soon pave the way for a probable agreement with the bilateral creditors for the external debt restructuring.

Finance Minister, Ken Ofori-Atta, has, already indicated that Ghana will conclude negotiations with its bilateral creditors including China by the end of the year.

Speaking at a press briefing to climax the World Bank/IMF Spring Meetings in Marrakesh, Morrocco, Ms. Georgieva said her outfit has made progress on debt resolution for countries in debt distress.

“Our fourth priority was hugely important, to make progress on debt resolution for countries in debt distress. We had a meeting of our Global Sovereign Debt Roundtable. And all in attendance‑‑bilateral creditors, traditional and new creditors, the private sector, the debtor countries‑‑all recognise that there is more agreement on how to go about debt restructuring today. And it is visible in the progress of Common Framework and non-Common Framework cases that are currently under discussion”.

“Some of them completed, like Chad, Zambia. Some of them are very well-advanced, like Sri Lanka and Ghana. Some of them speeding up because they need to, like Ethiopia. But that sense of constructive progress is there”, she stressed.

The IMF boss also pointed out that her outfit has made good progress with debt relief, “with the agreement of important lending programmes to countries like Zambia, Ukraine, Sri and Lanka, the creation of the Global Sovereign Debt Roundtable”.

In addition, she said the cooperation between borrowers and creditors has begun to speed up the debt restructuring process, noting “This is encouraging; although, of course, further progress is of the essence. And this is in addition to today’s very important accomplishments that I already referred to”.

Again, Ms. Georgieva said “This has been my last Annual Meetings as IMFC Chair. And I am proud to say, we have accomplished very important things during these two very turbulent years. We have created the Food Shock Window to address increasing food insecurity. We have also reinforced our toolkit to address the impact of climate change and pandemics in low‑ and middle-income countries, through the creation of the Resilience and Sustainability Facility.”

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