ADDIS ABABA – Ethiopia’s State Minister of Finance Eyob Tekalgn called on international creditors to step up their efforts to finalize the G20 common framework for debt treatment by establishing a clear timeline.
State minister Eyob said this today at the 9th Conference of the Paris Forum on promoting sustainable financial practices to address debt vulnerabilities.
At the conference, Eyob highlighted Ethiopia’s successful experience in developing a homegrown reform to implement sustainable financial practices and debt management, according to Finance Ministry.
He also urges the creditors to step up their efforts to finalize the G20 common framework for debt treatment by establishing a clear timeline.
The triple punch of rising interest rates, rising food and fuel prices, and the COVID aftermath have left many low-income countries at high risk or already in debt distress.
The G20 put in place the Common Framework to help these countries restructure their debt and deal with insolvency and protracted liquidity problems.
However, critics say the Framework, which includes both Paris Club and non-Paris Club creditors, is becoming ineffective due to the absence of clear procedures and timelines for debtors and creditors, a lack of clarity on how different creditors will be treated, and a geopolitical rift.
Ethiopia requested a debt treatment under the Common Framework in line with its government’s strategy to reduce debt service obligations in the short term and achieve a stable macro-economic climate with moderate debt vulnerability.
Featured Image Caption: Ethiopia’s State Minister of Finance Eyob Tekalgn speaking at a press conference [Photo File]
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