G24 Calls for Overhaul of Debt Architecture

by Zulfick Farzan 15-10-2025 | 11:29 AM

COLOMBO (News 1st); The Group of 24 (G24) has called for sweeping reforms to the international sovereign debt framework to help member states achieve debt sustainability and return to a positive growth trajectory.

The discussion came in response to a question from News 1st's Zulfick Farzan during a press session on global financial stability.

Pablo Quirno, Secretary of Finance at Argentina’s Ministry of Economy, emphasized that credibility and fiscal discipline are central to regaining market access:

“When you’re talking about debt burdens, emerging markets suffer most because access to credit is significantly reduced or eliminated. The answer to regaining debt sustainability goes hand in hand with credibility—credibility on your policies. Rising debt levels are a result of fiscal disequilibriums, so the first thing to attack is your fiscal situation. From there, you can refinance or restructure debt. In Argentina, we are making big strides through fiscal and monetary discipline, growth, and investment to alleviate debt burdens.”

Iyabo Masha, Director of the G24 Secretariat, underscored the need for a comprehensive and inclusive debt resolution mechanism:

“The current common framework offers limited restructuring with minor haircuts. We need a framework that includes not only bilateral creditors but also the private sector and international financial institutions like the IMF and World Bank. Past initiatives like HIPC and MDRI went much further than what we have now.”

Masha also highlighted the importance of market-based facilities for countries facing temporary liquidity shocks:

“Some countries are solvent but illiquid due to exogenous shocks. We need mechanisms they can quickly rely on. We’ve seen examples of such facilities work recently, including in Argentina.”

The G24’s position reflects growing concerns among emerging economies over the inadequacy of existing debt resolution mechanisms and the urgency for reforms that balance creditor participation with debtor sustainability.