Home Business & Economy IMF Warns Of ‘Economic Collapse’ Urges G20 To Extend, Improve Debt Relief...

IMF Warns Of ‘Economic Collapse’ Urges G20 To Extend, Improve Debt Relief Initiative


The IMF on Thursday urged advanced economies in the G20 to extend and improve its debt relief initiative, warning that many countries face a dire crisis without the help.

“We may see economic collapse in some countries unless G20 creditors agree to accelerate debt restructurings and suspend debt service while the restructurings are being negotiated,” IMF chief Kristalina Georgieva said in a blog, adding that it is critical private creditors also offer relief.

ALSO READ  Man Utd Finally Fires Ole Gunnar Solskjaer, As Michael Carrick Takes Charge

The G20 Debt Service Suspension Initiative (DSSI) expires at the end of the year, and without a renewal, countries could faced financial pressure and spending cuts just as new Covid-19 variants are spreading and interest rates are expected to rise, she said.

FILE PHOTO: IMF Managing Director Kristalina Georgieva speaks during a conference hosted by the Vatican on economic solidarity, at the Vatican, February 5, 2020. REUTERS/Remo Casilli

“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,” Georgieva said in the blog co-authored by Ceyla Pazarbasioglu, director of the fund’s Strategy, Policy, and Review Department.

Given the problems with the debt relief program and the common framework for dealing with private creditors, only three countries so far have applied for relief — Chad, Ethiopia and Zambia — and they have faced “significant delays.”

The framework has “yet to deliver on its promise. This requires prompt action,” she said.

ALSO READ  Chiwetalu Agu Narrates How SSS, soldiers Treated Him In Detention

Source: AFP

Spread the love


Please enter your comment!
Please enter your name here