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The IMF Chief, Kristalina Georgieva, has urged China to speed up efforts to restructure the debt of countries like Ghana, warning that delay could exacerbate the risk of a financial crisis in the affected countries.
Chief Georgieva commented after a meeting with Chinese officials in Beijing, where she discussed debt relief for poorer countries struggling to repay loans from China. She said while China has made some progress in addressing the issue, more needs to be done to ensure that governments are not burdened with unsustainable debt levels.
“We have urged China to speed up its work on debt restructuring for countries like Ghana, which are facing significant debt challenges,” Georgieva said. “Delaying action could increase the risk of the financial crisis in these countries and create wider economic instability.”
Recently, China has provided loans to developing countries for infrastructure projects such as roads, railways, and ports. Recently, China has provided loans to developing countries for infrastructure projects such as roads, railways, and ports. In recent years, China has provided loans for infrastructure projects such as roads, railways, and ports to developing countries. However, some countries need help to meet their debt obligations because of the loans’ high-interest rates and short repayment terms.
The IMF has been working with China and other creditors to restructure the debt of these countries to make it more manageable and sustainable. While progress has been made, more needs to be done to prevent countries from becoming enslaved by unsustainable debt burdens.
The IMF Chief said, “To reach a sustainable solution for all parties, we must work together. “This requires cooperation and coordination among all creditors, including China.”
Georgieva’s comments come amid growing concern about the debt levels of many developing countries, particularly in Africa. Ghana, in particular, has been struggling with a debt crisis in recent years, with its debt-to-GDP ratio reaching over 70% in 2021. The country has already received debt relief from the IMF, but there are concerns that more is needed to address its long-term debt challenges.
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Source: Omanghana.com/SP
