Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has urged the International Monetary Fund (IMF) to maintain its zero-interest-rate loans for Ghana and other low-income countries (LICs) via the Poverty Reduction and Growth Trust (PRGT).
During the 2024 African Consultative Group (ACG) meeting at the ongoing IMF/World Bank Group Spring Meetings in Washington, US, Dr. Addison stressed the necessity of continuing concessional financing for LICs.
He emphasized that such financing would complement monetary policies, aiding in curbing inflationary pressures and bolstering economic recovery and resilience in low-income nations.
Furthermore, Dr. Addison advocated for replenishing the Catastrophe Containment and Relief (CCRT) resources to provide grant support to vulnerable members in regions prone to shocks.
He reiterated the call for improvements to the G20 Common Framework and utilizing the Global Sovereign Debt Roundtable (GSDR) to facilitate transparent and fair debt resolution, including debt cancellation for the most vulnerable members.
Dr. Addison underscored the importance of better coordination between the IMF’s LICs facilities review and the World Bank’s IDA21 replenishment efforts to offer comprehensive support to LICs.
Encouraging African governments to boost domestic financing, Dr. Addison highlighted its necessity amid ongoing economic recovery and resilience efforts on the continent.
He stressed that while African countries confront multifaceted challenges and a sluggish post-pandemic recovery, relying solely on domestic adjustment policies without adequate financing would yield limited outcomes.