At a press conference in Marrakech during the Annual Meeting of the International Monetary Fund (IMF) and the World Bank, Kristalina Georgieva, managing director of the IMF, has renewed her call to accelerate debt restructuring processes in distressed countries that request.

Georgieva has highlighted the importance of creativity in the so-called “Common Framework”, an initiative supported by the G20 countries. Although this approach has not produced quick results in the past, the economist reports that there has recently been encouraging progress in processing requests for assistance.

The managing director mentioned concrete examples, such as Chad, who completed his restructuring in 11 months; Zambia, in 9 months; Sri Lanka, in 6 months; and the current ongoing negotiations for Ethiopia, which Georgieva hopes will continue to move forward similarly.

The “Common Framework” not only involves the traditional creditors of the Paris Club, but also features new creditors such as Saudi Arabia, China, Brazil and the Arab Emirates, as well as private creditors and representatives of borrowing countries, all working together.

Georgieva showed understanding towards countries’ complaints about their debt burden, especially when it relates to the effects of climate change, a problem for which these countries are not responsible.

Regarding the cancellation of debt in countries in difficulty, Georgieva acknowledged that this measure is extremely difficult, since it requires the unanimous agreement of all participants in the “Common Framework” round table.

K. Tovar

Source: Bancaynegocios

(Reference image source: Unsplash+)

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The International Monetary Fund (IMF) held “productive meetings” with Argentina to advance an economic program and the restructuring of 44,000 million dollars of debt that the country requested under the administration of Mauricio Macri.

As revealed by the agency, an IMF team headed by Julie Kozack, deputy director of the Western Hemisphere Department, and Luis Cubeddu, the Fund’s chief of mission for Argentina, met with the Argentine Minister of Economy, Martín Guzmán, and his team from the July 8-12 in Venice with the aim of deepening the technical work necessary to develop an IMF-supported program.

“Argentine authorities and IMF technical staff held productive meetings to advance technical work toward an IMF-supported program,” the Washington-based institution details.

Among other topics, the teams discussed the evolution of the global environment and the pandemic, as well as its implications for Argentina’s macroeconomic framework. In this context, talks between the parties focused on policies to strengthen recovery, economic stability and job creation.

Likewise, Argentina and the IMF made progress in identifying policy options to develop the domestic capital market, mobilize tax collection, and strengthen the country’s external resilience.

The Fund affirmed that it will continue working with the Argentine authorities with the objective of deepening “even more” its understanding in “key areas”. “Our objective is to support Argentina in addressing its economic and balance of payments challenges in a lasting way”, the statement added.

K. Tovar

Source: IMF

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