Governor Addison urges IMF to adapt policies that bolster support for African countries amidst complex economic challenges
In a compelling address at this year’s African Consultative Group (ACG) meeting in Washington DC on the sidelines of the IMF/World Bank April Spring Meetings, Dr. Ernest Addison, Governor of the Bank of Ghana, has called upon the International Monetary Fund (IMF) to bolster its support for African countries grappling with a myriad of domestic and external challenges.
Dr. Addison emphasized the imperative for the IMF’s policies to exhibit agility and adaptability in response to the rapidly evolving global landscape. He specifically advocated for a comprehensive review of Low-Income Countries (LICs) facilities, stressing the need to maintain concessional terms and enhance access to financing, particularly in the face of escalating global inflationary pressures.
“We underline the necessity for the upcoming comprehensive review of LICs facilities to maintain the PRGT’s concessionality and promote higher access to reverse erosion amplified by the global inflationary episode,” Dr. Addison remarked.
Furthermore, Dr. Addison highlighted the critical need to replenish resources for the Catastrophe Containment and Relief Trust (CCRT). This, he argued, would enable the provision of essential grant support to vulnerable members grappling with various shocks, such as the recent food crisis precipitated by the El Niño phenomenon.
In a bid to bolster support for LICs, Dr. Addison called for enhanced collaboration between the IMF and the World Bank, stressing the importance of synchronizing the IMF’s LIC Facilities Review with the World Bank’s IDA21 replenishment efforts.
Moreover, Dr. Addison urged the IMF to explore all available financing options, including the utilization of its internal resources. He suggested that the current favorable gold prices amidst the prevailing shocks and crises present an opportune moment for modest gold sales.
Concluding his address, Dr. Addison reiterated the pressing need for further refinements to the G20 Common Framework. He emphasized the importance of leveraging the Global Sovereign Debt Roundtable (GSDR) to facilitate transparent and equitable debt resolution, including debt cancellation for the most vulnerable members.
While Dr. Addison welcomed the ongoing review of the IMF’s internal debt policies, he underscored the need for impactful reforms to ensure their effectiveness.
The Governor’s address underscores the urgent plea from African central banks for the IMF to recalibrate its strategies and provide robust support to African nations navigating through an increasingly complex and challenging economic landscape.
