IMF applies to lenders and loan-borrower states


October 19, Fineko/abc.az. The head of the International Monetary Fund on Sunday called for significant steps to address the increasingly unsustainable debt burdens of some countries, urging creditors and debtors to start restructuring processes sooner rather than later.

ABC.AZ reports that IMF Managing Director Kristalina Georgieva said a six-month extension of the Group of 20 major economies' freeze in official bilateral payments would help low-income countries hammered by the COVID-19 pandemic.

“But more urgent action was needed. We need to go for greater debt transparency and greater coordination among creditors. We are encouraged by the G20 discussion on the theme "The common framework for sovereign debt management" and the call for better regulation of sovereign debt management, including private sector participation. Together with our member countries, we support their policies."

In addition, the IMF managing director called on lenders and borrowing countries to start restructuring loans in those countries where the level of debt is unacceptable.