Despite numerous COVID-19 relief initiatives, 60 percent of low-income countries were at high risk or already in debt distress in 2021, according to an International Monetary Fund blog.

The G20 Common Framework was launched in 2020 with the goal of streamlining debt restructuring efforts in the aftermath of the COVID-19 pandemic in poorer countries. However, progress has been slow, and IMF and World Bank officials have been open about the Framework’s flaws. They are advocating for G20 finance officials to put more pressure on China and private sector creditors to participate.

Source: The Reporter Newspaper

According to IMF spokesman Gerry Rice, a meeting between the Fund and Ethiopia’s creditor committee is scheduled for next week for an update on the country’s economic situation. There was no comment on the impact of debt talks on Ethiopia’s ongoing civil war.

Aside from Ethiopia, the IMF urged creditor committees in Chad and Zambia to reach agreements with authorities to restructure the countries’ debts as soon as possible, citing the possibility of unlocking IMF financing programs and disbursements.

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