IMF’s Debt Relief Begins


If you're new here, you may want to subscribe or learn more about Politonomist.

With the G20 summit due to commence in London just under two days from now, the revelation that the International Monetary Fund (IMF) will write off $3 billion of the Ivory Coast’s $12.8 billion national debt clarifies the agency’s approach for the finance talks on April 2nd. A proposed increase of the IMF’s lending capacity to $500 billion is set to be discussed at the G20 summit, and a vote in favour of passing the motion would see a dramatic rise in the amount of debt relief issued to emerging and developing economies.

The decision to write off almost 25% of the Ivory Coast national debt is part of the Heavily Indebted Poor Countries Initiative, and has earned the praise of President Laurent Gbagbo. On March 27th, the IMF approved a loan of $565 million to the Ivory Coast; attached were strict regulations on financial transparency and national poverty measures. A 2002 armed rebellion in the country has had long-lasting effects which have yet to be fully rectified, though it is hoped that a resolution is fast approaching.

Should the Group of 20 (G20) developed and developing economies agree to double the IMF’s lending capacity, it is expected that a large number of similar initiatives will occur in order to boost emerging economies out of the current financial crisis.

Print This Print This   Email This  

Leave a Reply

x

Email This