The Governor of the Bank of Ghana, Dr. Ernest Addison has called on the International Monetary Fund (IMF), to consider increasing concessional financing to the continent by modifying the access thresholds, expanding access limits and relaxing eligibility criteria for Poverty Reduction and Growth Trust (PRGT) resources.
This, he asserted, would ensure timely financing assistance to the most vulnerable members.
The Governor made this call during the 2023 Africa Consultative Group Meeting with the Managing Director of the IMF, Madam Kristalina Georgieva in Washington on Sunday.
He stated, “It is in this context we welcome the Fund’s decision to temporarily raise the annual and cumulative limits in the General Resources Account (GRA) to 200 percent and 600 percent of quota respectively for a period of 12 months. Nevertheless, we underscore the importance of aligning PRGT access limits with those of the GRA to enhance Fund support to PRGT eligible members facing acute debt challenges, while strengthening the fundraising efforts to bolster the PRGT resource envelope.”
The Governor further advised the IMF to continue close engagements with other international financial institutions and creditors to strengthen the multilateral framework for dealing with Africa’s debt distress in a timely manner.
“In this context, the G20 Common Framework (CF) should be enhanced to deliver swift, predictable, transparent, and equitable debt resolutions, while permitting debt service suspension during negotiation to offer instantaneous relief to debtors.
“As you are aware, Madam Managing Director, a protracted CF process undermines overall confidence and impacts IMF’s catalytic role, in addition to its negative demonstration effect with new countries that are hesitant to request a CF debt treatment. We also underscore the need for the newly created Global Sovereign Debt Roundtable to remain focused on accelerating debt restructuring processes and making the G20 Common framework more efficient, he stated.
The Governor also pointed out that tailored capacity development and surveillance support were indispensable in the continent’s reform agenda towards addressing debt challenges and creating fiscal space to tackle long-standing problems in order to sustain economic growth and development in member countries.
He therefore called on the IMF in conjunction with other international partners.to continue to provide such support.
Patience Anaadem, ISD
