In a speech at the African Consultative Group Meeting during the IMF and World Bank 2025 Spring Meetings, the Bank of Ghana’s Governor, Dr. Johnson Asiama, highlighted rising debt vulnerabilities in developing countries, particularly in Africa, and called for stronger IMF support, a more fit-for-purpose debt sustainability framework, and more effective debt restructuring and relief processes. The remarks pointed to high and rising debt levels, changing creditor composition, elevated rollover risks and large financing needs following successive shocks, and noted that about half of Sub-Saharan African countries were at high risk of, or already in, debt distress at end-2024. The speech argued that debt service burdens are constraining fiscal space for social and development spending, with per capita public spending on interest payments in Africa exceeding spending on health and education, compounded by declining overseas development assistance. Against this backdrop, the Governor urged the IMF to maintain the concessionality of the Poverty Reduction and Growth Trust, replenish the Catastrophe Containment and Relief Trust, and engage members to secure financing assurances for the distribution of General Resources Account income under the multi-year framework. He also called for refinements to the IMF’s debt sustainability toolkit, including better incorporation of climate-related debt risks and new debt instruments, stronger risk assessment and early warning systems, and an LIC DSA review that addresses identified shortcomings. On debt resolution, the speech urged streamlining the G20 Common Framework, improving debt transparency and reporting, incentivising private creditor participation, and using the Global Sovereign Debt Roundtable to advance discussions on fairer treatment across creditor classes and additional financing support given Multilateral Development Banks’ exposure to debt-vulnerable countries, alongside enhanced coordination across international financial institutions and greater use of blended finance and debt-for-climate or SDG swaps.
Bank of Ghana 2025-04-22
Bank of Ghana Governor urges IMF to strengthen concessional support and accelerate debt relief mechanisms for Africa
At the African Consultative Group Meeting, Bank of Ghana Governor Dr. Johnson Asiama highlighted rising debt vulnerabilities in developing countries, especially in Africa, and called for stronger IMF support and improved debt sustainability frameworks. He emphasized effective debt restructuring, relief processes, and urged refinements to the IMF’s debt sustainability toolkit, including better climate risk incorporation and enhanced early warning systems. The Governor also advocated for streamlining the G20 Common Framework and improving debt transparency and private creditor participation.