Nigeria and other developing nations have reiterated their request for debt relief within the G-24, an assembly of developing economies, citing unsustainability as part of the reason for amplifying the request now.
This came from the ongoing meeting of the International Monetary Fund (IMF) and World Bank in Marrakech, Morocco, the G-24, of which Nigeria is a member, presented a series of appeals.
G-24 members voiced their apprehension regarding the escalating and substantial levels of public debt faced by numerous developing countries.
They reckoned that these nations are grappling with unsustainable debt, making it difficult for them to fulfill their repayment obligations.
The members of the G-24 noted that the G-20 Common Framework, which is a debt relief initiative by the Group of Twenty (G-20) countries, but pointed out that some of the poorest and most vulnerable countries are not benefiting from the programme.
They pushed for a durable debt resolution specifically designed to address the debt problems of excluded countries at the same time demanding a more comprehensive and sustainable solution to lessen the burden of debt on debtor – countries and enable their economic growth and development.
Nigeria’s Minister of Finance and Coordinating Minister for the Economy Mr Wale Edun who made this known at the Africa Group 1 Constituency Meeting on the sidelines of the IMF/World Bank meeting stated that “our member statement urges an efficient debt resolution framework to support post-pandemic recovery and we indeed welcome Zambia’s debt restructuring agreement and call for swift resolution mechanisms for Ethiopia and Malawi.”
The G-24 members also seek more concessional lending, especially for investments in global public goods and sustainable development such as affordable water and energy.
“Elimination of export restrictions on fertilizer and grains, avoiding protectionist policies and leveraging the normalization of supply chains and shipping costs to reinvigorate global trade,” Edun said .
According to The Nation report, at the G-24 meeting, Edun and other finance ministers expressed their concern with the progress on the IMF general quota review. IMF general quota refers to the monetary contribution made by each member country to the International Monetary Fund (IMF).
This quota determines the country’s relative financial and voting power in the institution. The quota is assessed based on each member country’s share of the world economy, including its GDP, openness to trade, and international reserves.
The IMF uses the general quota to fund its lending activities and to provide financial stability to member countries facing economic difficulties. It also plays a vital role in decision-making processes regarding policies and strategies for the organization.
