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Rich nations should put $30 billion of IMF cash towards Africa investments – African ministers

Rich countries should reallocate at least $30 billion of new money from the International Monetary Fund towards investments in Africa to help countries battling the effects of coronavirus and climate change, four African finance ministers said.

In an open letter to the leaders of the Group of 20 leading economies, finance ministers from Ghana, the Democratic Republic of Congo, Ivory Coast and Nigeria also urged the rich nations to increase support for poorer countries’ COVID vaccination drive.

The IMF has taken steps to implement a new $650 billion allocation – the largest ever – of its reserve currency, so-called Special Drawing Rights (SDRs). The process is expected to be completed in August.

“Make the IMF’s promised new issue of Special Drawing Rights available as soon as possible and define a clear path forward for their maximal re-allocation and on-lending,” the ministers wrote in the letter published on Friday.

“The urgency now is to accelerate the disbursement of these SDRs to forestall the current emerging market liquidity crisis devolving into an insolvency crisis.”

The economic fallout from the pandemic has exacerbated existing strains on a number of African sovereigns, with Zambia, Chad and Ethiopia all seeking overhauls on their debt burdens.

In an open letter to the leaders of the Group of 20 leading economies, finance ministers from Ghana, the Democratic Republic of Congo, Ivory Coast and Nigeria also urged the rich nations to increase support for poorer countries’ COVID vaccination drive.

The IMF has taken steps to implement a new $650 billion allocation – the largest ever – of its reserve currency, so-called Special Drawing Rights (SDRs). The process is expected to be completed in August.

“Make the IMF’s promised new issue of Special Drawing Rights available as soon as possible and define a clear path forward for their maximal re-allocation and on-lending,” the ministers wrote in the letter published on Friday.

“The urgency now is to accelerate the disbursement of these SDRs to forestall the current emerging market liquidity crisis devolving into an insolvency crisis.”

The economic fallout from the pandemic has exacerbated existing strains on a number of African sovereigns, with Zambia, Chad and Ethiopia all seeking overhauls on their debt burdens.

|Reuters

GWO

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