In a column co-authored with Ceyla Pazarbasioglu, titled “The G20 Common Framework for Debt Treatment Must Be Strengthened,” Georgieva said it is “essential” that private creditors also provide relief.
The G20 Debt Service Suspension Initiative (DSSI) expires at the end of the year and, if not renewed, several countries could face financial pressures and spending cuts as a new variant of coronavirus spreads and is expected. an increase in interest rates, he remarked.
“The debt challenges are pressing and the need for action is urgent. The recent omicron variant is a stark reminder that the pandemic will be with us for a while,” the authors emphasized.
Given the problems with the debt relief program and the common framework for dealing with private creditors, so far only three countries have requested the lightening of that burden (Chad, Ethiopia and Zambia) and face “significant delays” in their payments.
The operational framework “has yet to deliver on its promise. This requires swift action,” the IMF official concluded.
Source From: Ambito
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