G-24 Urges Comprehensive Approach On High Debt Levels

COLOMBO (News 1st); G-24 members expressed concern about high and increasing public debt levels, with many developing countries carrying unsustainable debt burden. These concerns were raised during the IMF / World Bank Spring Meetings.

The Intergovernmental Group of 24 or G-24 members note that the global economic landscape has improved but remains uncertain, with any countries affected by declining access to finance, tight external financing conditions, high debt levels and inflation.

The Group called for a variety of steps to increase the financing available to developing countries.

They also asked for reform of IMF short-term financing instruments; increased concessional financing to low-income countries; downward review of IMF’s charges and surcharges; and increased channeling of SDR from donor countries to needy countries.

G-24 members expressed concern about high and increasing public debt levels, with many developing countries carrying unsustainable debt burden.

While members welcome progress on the G-20 Common Framework, they called for the design of a comprehensive and responsible approach thath as concrete impactful measures to support countries in reducing high debt levels and debt service costs.

Sri Lanka's Debt Crisis was also discussed at the G24 meeting.

"We did discuss the common framework, generally, and the position of the G24 is based on the latest resolutions that we've seen in Ghana and Zambia, there has been some progress on the common framework. For Sri Lanka, they have a problem, because it is a middle income country, so it does not qualify for the common framework. But, we did call on the global leadership, the IMF and World Bank, to look into strengthening the common framework in certain areas. One is to be able to deliver, very fast and predictable resolution for countries, because it took a very long time for countries to get some kind of resolution, and during that time countries were falling into debt. We also ask for some engagement with the credit rating agencies, " said Iyabo Masha
Director of G24 durign a press conference in Washington, DC.

Sri Lanka's State Finance Minister Shehan Semasinghe attended the G-24 Finance Ministers and Central Bank Governors’ meeting during the IMF/WB Spring meetings.

The State Minister highlighted the deep and wide ranging economic reform programme adopted to address fundamental macroeconomic vulnerabilities that contributed to the economic crisis, including significant fiscal reforms, monetary policy adjustment, financial sector stabilisation, debt restructuring, welfare reforms, and governance reforms along with progress on debt restructuring process.

Further he stated that the economy has now stabilised and the growth momentum has commenced.