Bank of Ghana Governor (BOG), Dr. Ernest Addison, has strongly advocated for enhancements to the G20 Common Framework.
Speaking at the 2024 Africa Consultative Group meeting in Washington DC, he emphasised the need for accelerated discussions on debt negotiations and cancellation for the least developed countries (LDCs).
Dr. Addison stressed that improving the G20 Common Framework would promote rapid, transparent, and fair resolution of debt issues, especially benefiting the most vulnerable members.
The Bank of Ghana Governor maintained that this will “promote rapid, transparent, and equitable resolution of debt as well as facilitate debt cancellation for the most vulnerable members.”
He also highlighted the importance of leveraging the Global Sovereign Debt Roundtable to support these efforts.
“ this must ensure that the changes are impactful and achieve their intended purpose to better align their support to low-income countries.
“We stress the need for coordination of the IMF’s LIC Facilities Review with the World Bank’s IDA21 replenishment efforts to support LICs in a holistic manner” the Governor added
Under the theme “Bolstering Africa’s financing through the Overlapping crises and beyond,” Dr. Addison emphasised the significance of reviewing the IMF’s internal debt policies to ensure their impact and effectiveness.
Ghana, a beneficiary of the G20 Common Framework, has also participated in the Debt Suspension Initiative, providing relief on debt owed to bilateral creditors.
However, with the initiative set to end this year, negotiations with external creditors are crucial for meeting debt obligations.
In addition to debt relief mechanisms, Dr. Addison called for meaningful collaboration between the World Bank and the IMF to align their support for low-income countries (LICs).
“Considering the expiry of the Food Shock Window amidst a food crisis triggered by the El Nino phenomenon, the Fund’s emergency financing alongside augmentations in programme countries would be important to close climate-induced financing gaps” he added.
This coordination, he argued, would better assist LICs in facing multiple shocks and climate-induced financing gaps.
The Bank of Ghana Governor urged intensified fundraising efforts under the second phase of resource mobilisation initiatives to support vulnerable members like Ghana amidst ongoing global challenges.
“In this regard, we call for intensified fundraising efforts under the second phase of the resource mobilization initiatives.”