Stating that the costs of delays in reaching an agreement on debt restructuring acutely impact borrower countries, International Monetary Fund Managing Director Kristalina Georgieva called for a process that is “speedier and more effective”.
IMF chief Kristalina Georgieva made the remarks Tuesday at the third meeting of the G20 Finance Ministers and Central Bank Governors in Gandhinagar, Gujarat. She termed the recent agreement on Zambia’s debt restructuring as a significant milestone for the G20 Common Framework.
Debt restructuring is a process used by companies, individuals, and even countries to avoid the risk of defaulting on loans.
“While this progress is important and welcome, the debt restructuring process still needs to be speedier and more effective. The costs of delays in reaching an agreement on needed debt treatments are borne acutely by borrower countries and their people, who are least able to bear this burden,” the IMF chief said.
