By Zayamu Hassan
As African leaders converge for a summit in Paris beginning from Monday, there is the possibility that in the days ahead, some countries in the region may get debt relief.
The head of the International Monetary Fund, Kristalina Georgieva, disclosed this when responding to question from FRANCE 24.
The Paris Summit which is largely attended by leaders in the African region is aimed at discussing the needs of African countries after the COVID-19 pandemic.
President Muhammadu Buhari of Nigeria is also attending the meeting.
Georgieva noted that efforts are currently underway at the G20 with Chad, Zambia and Ethiopia trying to overhaul their debt burdens.
She expressed optimism that the outcome of the talks could encourage other countries to enter the process.
“That would allow us to bring down the dangerous levels of debt in countries that are suffocating under a high debt burden.
“This is the kind of situation where you need all hands on deck,” she said, calling on indebted countries, the international community and the private sector to work together on the issue,” she said.
Georgieva, however, called on the international community to step up efforts to ensure what she described as a “dangerous divergence” of fortunes between advanced and developing economies is avoided.
“This divergence would mean more insecurity, more instability and lost opportunities for the world economy to grow,” she warned.
The IMF Chief said she hoped a planned $650 billion increase in the Fund’s reserves, known as Special Drawing Rights, could be used as a way for richer countries to provide more help to those in need.
“We have done it, we can do it again. Of course it is up to our members, but I was so encouraged to hear many countries stating that they want to see an on-lending done to help the countries that are in dire need,” she said.
