IMF says changes to G20 Common Framework required for debt restructuring

 

Chief of the International Monetary Fund (IMF) Kristalina Georgieva has stated that changes to the G20 Common Framework on debt restructuring were needed to speed up debt treatments, freeze debt service payments once a country requested help, and open the process to middle-income countries like Sri Lanka.

“We are concerned that there is a risk for confidence in debt resolution to be eroded at a time when the level of debt is very high,” Georgieva said, speaking to foreign media.“We don’t see at this point .a risk of a systemic debt crisis,” she said, adding that countries in debt distress were not large enough to trigger a crisis that would threaten financial stability.

Meanwhile, World Bank President David Malpass is due to join a meeting in China next week, with heads of other international institutions and Chinese authorities, including Georgieva and officials from China Development Bank and the Export-Import Bank of China.