IMF Managing Director Kristalina Georgieva affirmed teh fund’s commitment to urging the Group of Twenty (G20) nations to make progress on resolving global debt vulnerabilities, particularly for low- and middle-income countries. Georgieva stated the IMF will continue to advocate for a more coordinated approach to debt restructuring and relief during ongoing discussions with G20 finance ministers and central bank governors.
The intensifying debt challenges facing numerous developing economies are hindering their ability to invest in crucial areas like healthcare, education, and climate change mitigation, potentially derailing global economic recovery. The IMF’s push comes as several countries grapple with unsustainable debt burdens exacerbated by rising interest rates, a strong U.S. dollar, and geopolitical shocks. Successfully addressing these issues is critical to preventing widespread economic distress and fostering enduring growth, with the IMF playing a key role in facilitating negotiations between debtors and creditors.
“we will keep pushing the G20 to prioritize debt issues,” Georgieva said during a press briefing following meetings with G20 officials. “We need a more collaborative and predictable framework for debt resolution.”
The IMF is currently involved in debt restructuring programs with countries including Zambia, Sri Lanka, and Ghana, and is closely monitoring debt situations in several others. Georgieva emphasized the importance of timely and effective debt relief to allow these nations to regain economic stability and resume sustainable growth paths. She also highlighted the need for improved data transparency and better coordination among creditors, including both official and private lenders.
