The leaders of G20 nations on Saturday agreed to urgently and effectively address debt vulnerabilities in developing countries, including Zambia, Ghana and Sri Lanka. Debt vulnerability-related issues of three countries — Zambia, Ghana and Ethiopia — are addressed under the common framework, while Sri Lanka is outside the framework.
The G20 New Delhi Leaders’ Declaration noted that with notable tightening in global financial conditions, which could worsen debt vulnerabilities, persistent inflation and geoeconomic tensions, the balance of risks remains tilted to the downside.
The G20 leaders committed to promote resilient growth by urgently and effectively addressing debt vulnerabilities in developing countries, the Declaration said.
The leaders re-emphasise the importance of addressing debt vulnerabilities in low and middle-income countries in an effective, comprehensive and systematic manner.
The G20 called for continued discussion on policy-related issues linked to the implementation of the Common Framework for making appropriate recommendations.
“We welcome the recent agreement between the Government of Zambia and the official creditor committee on debt treatment and look forward to a swift resolution. We welcome the formation of the official creditor committee for Ghana and look forward to an agreement on a debt treatment as soon as possible. We also call for a swift conclusion of the debt treatment for Ethiopia,” the Declaration said.
Beyond the Common Framework, it welcomed all efforts for timely resolution of the debt situation of Sri Lanka, including the formation of the official creditor committee, and the resolution as soon as possible.
So far, the only country Chad has debt restructuring.
The G20 recognised the efforts of the Global Sovereign Debt Roundtable (GSDR) participants to strengthen communication and foster a common understanding among key stakeholders, both within and outside the common framework, for facilitating effective debt treatments.
GSDR was created to strengthen communication and foster a common understanding among key stakeholders, both within and outside the common framework, for facilitating effective debt treatments.
It will now be a permanent feature of the G20, and the co-chairs will be the World Bank, IMF and the host country.
The G20 welcomed joint efforts by all stakeholders, including private creditors, to continue working towards enhancing debt transparency.
