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Georgieva announced the launch of a sovereign debt table

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Georgieva also warned about the slowdown in global economic growth in 2023 and called for the responsibility of the international community to find solutions “for the most vulnerable members.”

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“With global growth set to slow in 2023 and remain below its historical average, too many people in too many countries are struggling to make ends meet, a point I made in my recent blog on political priorities for the G20. The international community therefore has a responsibility to come together to find solutions for the most vulnerable members of our global family.This calls for urgent action to strengthen the international financial architecture, especially in the area of ​​debt resolution and strengthening of the global financial safety net,” Georgieva said in her G20 presentation.

He also called for progress in the resolution of sovereign debt problems that many countries will face and strengthen the debt architecture to improve its resolution.

“Sovereign debt vulnerabilities, which were already high before the pandemic, have been exacerbated by shocks from the Covid-19 and Russia’s war against Ukraine. This is particularly the case of low-income and developing countries with very limited policy space and enormous development needs”.

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Called on G20 members to strengthen the debt architecture and highlighted the role it played in 2020 with the suspension of debt services and the creation of the Common Framework (CF) for debt resolution: “Since then, the CF delivered a debt operation for Chad. Now It is critical to complete Zambia’s debt restructuring, establish a Creditors’ Committee for Ghana and move forward with work with Ethiopia.”

“We must improve dialogue and collaboration on debt issues,” said Georgieva, who added: “This is the goal of the new Global Sovereign Debt Roundtable (GSDR): bring together creditors (official, old and new, and private) and debtor countries to discuss key issues that can facilitate the debt resolution process. We launched the GSDR under the auspices of India’s G20 Chairmanship last week at the MP level, followed by an engaged and constructive Directors’ meeting today. We will expand this discussion during the Spring Meetings of the World Bank and the IMF in April.”

“In a world of great uncertainty and repeated turbulence, it is critical to further strengthen the IMF’s ability to support its members,” the managing director explained.

“This applies most urgently to our concessional financing for low-income countries through our Poverty Reduction and Growth Facility (PRGT)”.

“Furthermore, a successful quota review, which IMF members have committed to completing by December 2023, is critical to a rstrong global financial security network. The latter has always been important for global stability and is even more important in today’s challenging global environment, especially for the most vulnerable countries and people. Our common interest is to ensure a well-functioning and integrated global economy,” the official concluded.


Source: Ambito

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