By 
Dr. Ernest Addison, Governor of the Bank of Ghana, has advocated for significant enhancements to the G20 Common Framework for debt relief, emphasizing the importance of the Global Sovereign Debt Roundtable (GSDR) in achieving rapid, transparent, and equitable debt resolutions. Dr. Addison spoke at the 2024 African Consultative Group (ACG) meeting with the International Monetary Fund’s (IMF) Managing Director, Kristalina Georgieva, during the IMF/World Bank Spring Meetings.
The GSDR aims to foster a deeper mutual understanding among stakeholders involved in debt restructurings, addressing current inefficiencies and proposing effective solutions. Dr. Addison highlighted the critical need for facilitating debt cancellation for particularly vulnerable countries.
“We reiterate our call for further enhancements to the G20 Common Framework and advocate for the use of the Global Sovereign Debt Roundtable to ensure faster, fairer, and more transparent debt resolution processes, as well as to enable debt cancellation for our most vulnerable members,” Dr. Addison stressed.
His comments are particularly pertinent as nations like Ghana, Zambia, and Sri Lanka face prolonged delays in obtaining debt relief amidst discussions with various stakeholders.
Dr. Addison also welcomed the review of the IMF’s internal debt policies but underscored the necessity for impactful changes that fulfill their intended goals.
“The challenging domestic and external conditions we face make it clear that policy adjustments alone are insufficient without robust financing support,” Dr. Addison remarked, highlighting the indispensable role of development partners, including the IMF, in supporting African nations through these trials.
He outlined several urgent priorities for the IMF to better assist its vulnerable African members, particularly emphasizing the need to maintain the concessionality of the Poverty Reduction and Growth Trust (PRGT) and to increase access in light of global inflationary pressures.
Additionally, Dr. Addison called for the replenishment of the Catastrophe Containment and Relief Trust (CCRT) to provide grants to the most vulnerable members in a world prone to frequent shocks.
The governor urged the IMF and the World Bank to coordinate their efforts more closely, particularly aligning the IMF’s review of facilities for low-income countries with the World Bank’s IDA21 replenishment strategy to comprehensively support these nations.
Dr. Addison also advocated for keeping all financing options available, including leveraging the IMF’s internal resources. “Given the unprecedented nature of the current multiple global crises, we see this as an opportune moment for a modest sale of IMF gold reserves, especially while market conditions for gold remain favorable,” he concluded.
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