International Monetary Fund Managing Director Kristalina Georgieva on Monday said she hoped debt restructuring efforts for Zambia and Chad could be completed by the end of the year, which would pave the way for more countries to seek help.
Georgieva, speaking with civil society groups 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 were the first to request help.
She 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 expand 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 today that would allow immediate suspension of debt service payments if a country experienced a climate shock,” she said.