The International Monetary Fund (IMF) has disclosed that 15% of low-income nations are already experiencing debt crises.
According to Nairametrics, the IMF stated in a new report titled “Confronting Fragmentation Where It Matters Most: Trade, Debt, and Climate Action” that a further 45% of the population is further at high risk of debt distress.
The paper further stated that many nations struggle with debt, adding that fragmentation will make it more difficult to address sovereign debt problems. Particularly if important government creditors are split along geopolitical lines.
Research by Nairametrics noted that the IMF observed that roughly 25% of emerging countries are at high risk and are dealing with borrowing spreads that resemble defaults.
The monetary organisation claimed that there were indications of advancement on the Common Framework for Debt Treatment of the Group of Twenty.
It stated that while Zambia was moving closer to a debt restructuring while Chad had recently achieved an arrangement with both its official and private creditors. Additionally, Ghana allegedly became the fourth nation to request assistance under the Common Framework, indicating that it had viewed this as a crucial route for debt relief.
The IMF claims that nations seeking debt restructuring under the Framework will require more clarity regarding procedures and standards as well as shorter and more foreseeable deadlines, according to Nairametrics.
You can read more of such stories at Credible News.
- World Bank Says Nigerian New Naira Notes not Timely as CBN Releases It’s Security Features
- International Monetary Fund, World Bank, Seek Jimoh Ibrahim’s Input On Business
To support these improvements, the IMF, World Bank, and Indian G20 presidency are working with borrowers and public and private creditors to rapidly establish a global sovereign debt roundtable, where we can discuss current shortcomings and make progress to address them. However, the report only partially addressed countries that were not covered by the framework.
“These steps, together with other practical ones, can enhance debt resolution. Examples include further development of majority vote procedures in sovereign loans and climate-resilient debt conditions. That would help nations resume investing in their future while lowering economic and financial uncertainty.
You can read more of such stories at Credible News and The Cheer News
