BoG Governor calls on IMF to increase concessional financing to Africa

He asked the Fund to modify the access thresholds, including expanding access limits and relaxing eligibility criteria for PRGT (Poverty Reduction and Growth Trust) resources.

He made the call at the 2023 Africa Consultative Group Meeting with the Managing Director of the IMF, Kristalina Georgieva.

Dr. Addison said “It is in this context we welcome the Fund’s decision to temporarily raise the annual and cumulative limits in the General Resources Account (GRA) to 200% and 600% of quota respectively for a period of 12 months. Nevertheless, we underscore the importance of aligning PRGT access limits with those of the GRA to enhance Fund support to PRGT-eligible members facing acute debt challenges, while strengthening the fundraising efforts to bolster the PRGT resource envelope.”

Dr. Ernest Addison further asked the IMF to engage closely with other international financial institutions and creditors to strengthen the multilateral framework for dealing with Africa’s debt distress in a timely manner.

“The G20 Common Framework (CF) should be enhanced to deliver swift, predictable, transparent, and equitable debt resolutions while permitting debt service suspension during negotiation to offer instantaneous relief to debtors.

“We also underscore the need for the newly created Global Sovereign Debt Roundtable to remain focused on accelerating debt restructuring processes and making the G20 Common framework more efficient,” he proposed.

Dr. Addison urged the Fund to continue to provide tailored capacity development and surveillance support, in conjunction with other international partners, which are indispensable in the continent’s reform agenda towards addressing debt challenges and creating fiscal space to tackle long-standing snags to sustained economic growth and development in member countries.