(The East African)-The International Monetary Fund will address the debt crisis country by country, and for countries facing insolvency, debt restructuring might be necessary.
The Fund made the call during the World Bank/IMF Spring Meetings in Washington DC this past week as civil society and pressure groups called for debt forgiveness.
A number of countries including Zambia, Ghana have defaulted in debt repayment and Kenya is facing a potential crunch point in June 2024 when a 10-year Eurobond worth $2 billion will be due, unless a yield retreat allows for refinancing.
IMF Managing Director Kristalina Georgieva has called for debt restructuring for countries facing insolvency and debt stress, admitting that the lending landscape has changed drastically while debt resolution mechanisms have not.
“We take it upon us to support a more inclusive and more effective debt resolution. If we create a fair inclusive atmosphere for discussion as we have done now then the part of the resolution is clear. We will address the debt resolution country by country basis,” she said.