International Monetary Fund, IMF Managing Director, Kristalina Georgieva, has set to ensure the debt restructuring efforts for Zambia and Chad could be completed by the end of the year to pave the way for more countries to seek help.
While speaking with civil society groups, Georgieva at the start of the annual IMF and World Bank meetings, said a Group of 20 initiative launched in late 2020 had been slow to become operational, but she was upbeat about the cases of Chad and Zambia, who together with Ethiopia was the first to request help.
Georgieva said the IMF was pressing for more predictability and timely resolution of requests for help under the G20 Common Framework. It was also critical to expanding the framework to include middle-income countries, she said.
The IMF was also working on how to include collective action clauses in debt contracts being signed that would allow immediate suspension of debt service payments if a country experienced a climate shock, she said.