The Governor of the Bank of Ghana, Dr. Ernest Addison, has called for tailored financing support for low-income countries to address the unique economic challenges faced by nations with limited resources.
He underscores the need for development partners to adopt strategies that are responsive to the exacerbated existing vulnerabilities in such countries as empowerment for low-income countries to navigate the complex economic landscape.
Dr. Addison made the call when he delivered an address at the 2024 African Consultative Group (ACG) meeting with the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva at the ongoing IMF/World Bank Spring meeting in Washington DC.
“We call for meaningful collaboration between the IMF and the World Bank to better align their support to LICs. In this regard, we stress the need for coordination of the IMF’s LIC Facilities Review with the World Bank’s IDA21 replenishment efforts to support LICs in a holistic manner.
“Third, we stress the need to keep all financing options on the table, including the use of the Fund’s internal resources. In view of the recent multiple shocks and a crisis like no other, now is the opportune time for a modest gold sale, particularly when gold prices are still favourable.”
He was speaking on the theme, “Bolstering Africa’s Financing through the Overlapping Crises and Beyond.”
As the discussions at the Spring Meeting continue, delegates remain committed to forging solutions that prioritize the needs of low-income countries.
The call for tailored financing support reflects a growing acknowledgement within the global financial community of the need for inclusive and equitable economic policies.
While still pushing for further enhancements to the G20 Common Framework, he said these reviews of internal debt policies must achieve their intended purpose.
He added that IMF’s policies must be made flexible amid the changing global conditions to improve the economic situation of member countries.
“We underline the necessity for the upcoming comprehensive review of LICs facilities to maintain the PRGT’s
concessional and promote higher access to reverse erosion amplified by the global inflationary episode. We also underscore the criticality of replenishing the CCRT resources envelope to offer grant support to our
most vulnerable members in this shock-prone world. In this regard, we call for intensified fundraising efforts under the second phase of the resource mobilization initiatives.
Dr. Ernest Addison also thanked the IMF Boss, Kristalina Georgieva for their continued support of Africa.
“For your excellent leadership, and your strong support for Africa, Africa continues to face complex challenges against the backdrop of successive shocks, manifesting in a subdued post-pandemic recovery, elevated debt distress, and a persistent funding squeeze, that have amplified income divergences and undermined the achievement of sustainable and inclusive growth”, he praised.
Source: Citinewsroom