IMF's Commitment to Restructuring: A New Playbook for Debt Relief

The IMF is urged to enhance its role in debt restructuring for low- and middle-income countries. At a Bretton Woods Committee event, IMF's head Kristalina Georgieva highlighted the need for more technical support from the IMF in managing heavy debt burdens, particularly for African nations.

The International Monetary Fund is being called upon to take a more active role in debt restructuring processes, as the challenges facing vulnerable low- and middle-income countries continue to escalate. Kristalina Georgieva, the global lender's managing director, emphasized this need during an event hosted by the Bretton Woods Committee.

Georgieva announced that the Global Sovereign Debt Roundtable, which includes creditor and borrowing nations alongside the IMF and the World Bank, has endorsed a new playbook designed to aid countries in navigating the complexities of debt restructuring. This document will be unveiled after a confidential meeting in Washington.

A joint statement with African Caucus Chair Hervé Ndoba cautioned that potential new shocks could undo Africa's economic progress. The statement vowed that the IMF would stay agile in addressing emerging challenges, backing initiatives like the G20 Common Framework to promote fiscal sustainability and growth stability.

(With inputs from agencies.)