Kristalina Georgieva, managing director of the International Monetary Fund (IMF), said debtors and creditors have made “tangible progress” on debt restructuring but urged countries facing mounting debt problems to seek help at an early stage. earlier in the process.
A new round table on sovereign debt is helping to speed up debt restructuring work, Georgieva said at a press conference after the spring meetings of the IMF and the World Bank in Washington.
He also said that last week, during these working sessions, the participants reached a common understanding on the role that multilateral development banks can play in providing net positive flows to countries in need.
However, he added that countries approaching a debt situation, along with their creditors, must make progress in realigning debt levels before a full restructuring is necessary.
“I really hope that we will take proactive measures to avoid the need for restructuring, such as reprofiling the debt soon, providing financial assistance to countries to intensify their economic activities and avoiding a more massive debt restructuring process,” said the official.
Georgieva highlighted having to be prepared in case global conditions worsen. “Imagine further tightening of financial conditions, increasing the burden on these countries. Please let us act before the situation becomes dire,” she expressed.
