Bank of Ghana Governor Dr Ernest Addison has emphasized the need for the G20 Common Framework to be strengthened in order to expedite discussions on debt negotiations and cancellations for least developing countries.
This approach, according to the Governor, will facilitate a swift, transparent, and fair resolution of debt issues, particularly for the most vulnerable nations.
Speaking at the 2024 Africa Consultative Group meeting alongside IMF Managing Director Kristalina Georgieva, Dr Ernest Addison highlighted the importance of leveraging the Global Sovereign Debt Roundtable to support this cause. The focus of his address was on the theme “Bolstering Africa’s financing through the Overlapping crises and beyond.”
Ghana, as one of the beneficiaries of the G20 Common Framework, has utilized the framework to coordinate and cooperate on debt treatments for low-income countries. Debt treatments under the Common Framework are initiated upon the request of a debtor country, with a focus on ensuring broad creditor participation and fair burden sharing.
The Bank of Ghana Governor also called for a review of the Fund’s internal debt policies to ensure their effectiveness and alignment with intended outcomes. Additionally, he advocated for stronger collaboration between the World Bank and the IMF to better support low-income countries, emphasizing the need for coordinated efforts in providing financial assistance.
Dr Ernest Addison stressed the importance of exploring all available financing options, including the use of the Fund’s internal resources, especially in the face of recent multiple shocks affecting vulnerable nations like Ghana. He urged the IMF and other member countries to work together more effectively to assist those in need, particularly in light of the ongoing food crisis triggered by climate-related factors.
As the Debt Suspension Initiative is expected to end soon, Ghana is actively engaged in negotiations with external creditors to meet its debt obligations. The Governor’s call for intensified fundraising efforts and collaboration underscores the commitment to addressing the urgent financial needs of vulnerable countries like Ghana in the wake of ongoing global challenges.
