According to the International Monetary Fund, 15% of low-income nations are already experiencing debt crisis.
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.
According to the paper, many nations struggle with debt, and fragmentation will make it more difficult to address sovereign debt problems, particularly if important government creditors are split along geopolitical lines.
According to a research by Nairametrics, the IMF observed that roughly 25% of emerging countries are at high risk and are dealing with borrowing spreads that resemble defaults.
The monetary body said that there were signs of progress on the Group of Twenty’s Common Framework for debt treatment.
It said while Chad recently reached an agreement with its official and private creditors, Zambia was progressing toward a debt restructuring. Ghana also reportedly became the fourth country to seek treatment under the Common Framework, sending a signal that it had seen as an important pathway for debt resolution.
Nigeria, Ghana 68 Other Countries Get $99b IMF Cash
According to the IMF, countries seeking debt restructuring under the Framework will need greater certainty on processes and standards, as well as shorter and more predictable timelines, reports Nairametrics.
For countries not covered by the framework, however, the report partly said, “To support these improvements, the IMF, World Bank and Indian G20 presidency are working with borrowers and public and private creditors to quickly establish a global sovereign debt roundtable, where we can discuss current shortcomings and make progress to address them.
“These and other pragmatic actions, such as further progress on majority voting provisions in sovereign loans and climate resilient debt clauses, can help improve debt resolution. That would reduce economic and financial uncertainty while helping countries get back to investing in their future.”
Follow us on Facebook
Post Disclaimer
The opinions, beliefs and viewpoints expressed by the author and forum participants on this website do not necessarily reflect the opinions, beliefs and viewpoints of Anaedo Online or official policies of the Anaedo Online.