Ghana’s central bank governor, Dr. Ernest Addison, urged the international community to step up efforts to help developing countries facing crippling debt burdens.
- Dr. Addison called for improvements to the G20’s Common Framework for debt relief.
- He emphasized the role of the Global Sovereign Debt Roundtable (GSDR) in promoting faster, fairer debt resolution.
- The Governor stressed the need for debt cancellation for the most vulnerable countries.
Dr. Addison’s comments come as Ghana and other African nations struggle to secure debt relief. He highlighted the urgency of the situation, particularly amidst global challenges like inflation.
The Governor proposed several solutions:
- Preserve concessionality: Maintain favorable loan terms for low-income countries within the IMF’s Poverty Reduction and Growth Trust (PRGT).
- Increase access to resources: Expand access to IMF support programs to counter the effects of inflation.
- Refill Catastrophe Containment and Relief Trust (CCRT): Provide grant support to vulnerable nations facing crises.
- Improved collaboration: Encourage better coordination between the IMF and World Bank to offer holistic support to low-income countries.
- Strategic use of IMF resources: Consider a modest sale of IMF gold reserves to generate additional funds, given the current favorable gold prices.
Dr. Addison emphasized the need for immediate action to help developing nations navigate complex economic challenges.
