BoG Governor advocates for comprehensive debt restructuring reforms in the G20 Common Framework
Dr. Ernest Addison, the Governor of the Bank of Ghana, has emphasized the pressing need for a revitalized G20 Common Framework (CF). The goal is to ensure that debt restructuring for distressed member countries in the region, including Ghana, Ethiopia, and Malawi, is conducted in a manner that is timely, well-organized, equitable, inclusive, and transparent.
He made the call in an address delivered at the ongoing World Bank/IMF Meetings in Morocco.
In his call for action, Dr. Addison highlights the necessity for a meticulously designed debt resolution mechanism. This is especially critical for countries with substantial domestic creditors, such as Ghana, as it serves to avert potential instability in domestic financial markets.
Additionally, the governor underscores the importance of enhancing debtor-creditor engagements through an improved Global Sovereign Debt Roundtable (GSDR). This collaborative platform is essential in fostering a common understanding of all debt-related issues, ultimately contributing to a more swift, proactive, and systematic approach to restructuring.
Furthermore, he reiterated the need for a debt standstill during periods of negotiation. This measure, he noted, would offer immediate relief to debtor nations. The call for multilateral debt cancellation is also reaffirmed, particularly for the most vulnerable member countries grappling with acute debt challenges.
Dr. Ernest Addison’s remarks underscore the urgency of addressing debt challenges and the need for a more coordinated, transparent, and inclusive approach to debt restructuring. The call for collaboration and international support is central to the pursuit of economic stability and sustainability in these member countries.
