Create A Stronger IMF Support to Address Debt Challenges -Governor Addison To IMF
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The World Bank/IMF Meeting is underway in Marrakech, Morocco, and Governor of the Bank Of Ghana, Gov. Addison has called on the IMF to create a stronger IMF support to address debt challenges in Africa.
At the recent IMF/WBG Annual Meeting, Governor Addison called for stronger IMF support to address debt challenges in the region. He noted that African economies are facing acute debt challenges underscored by rising social and infrastructural needs, amid spillovers from the Covid-19 pandemic, the war in Ukraine, tightening of global financing conditions, and climate-related disasters.
The Governor made a number of specific proposals to the IMF, including:
- Increase concessional financing: He urged the IMF to increase concessional financing by aligning PRGT access thresholds with those of the GRA to ensure uniformity of treatment. Dr. Addison also called on the Fund to relax the PRGT eligibility criteria to foster access to adequate Fund support while reducing, suspending, or eliminating entirely surcharges for most vulnerable PRGT-eligible members facing acute debt challenges.
- Strengthen multilateral coordination and efficiency of regulatory framework for debt resolution: He stressed the importance of strengthening multilateral coordination and efficiency of regulatory framework for debt resolution in LICs, through a formidable Global Sovereign Debt Roundtable (GSDR). He also underscored the need to revamp the G20 Common Framework (CF) to ensure timely, orderly, equitable, inclusive, and transparent debt restructuring for distressed members in the region.
- Enhance cooperation with MDBs/RDBs: He called for enhanced cooperation between the IMF and MDBs/RDBs to facilitate timely provision of MDBs/RDBs’ financial assistance for members facing significant debt and growth challenges. Dr. Addison also restated the call for new SDR allocation through the MDBs/RDBs’ (including AfDB), given their multiplier effects in achieving climate and development goals.
- Deepen tailored capacity development and surveillance support: He stressed the importance of deepening the Fund’s tailored capacity development and surveillance support, in collaboration with other international partners, to address member-specific bottlenecks for restoring public debt sustainability, and bolstering inclusive and sustainable economic growth and development in the region.
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He called for stronger IMF support is timely and justified. African economies are facing a number of challenges, and the IMF has a vital role to play in helping them to weather the storm and achieve sustainable and inclusive growth.