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Georgieva calls for "much more decisive" actions so that troubled countries can deal with debt

2020-10-18T20:33:49.878Z

"Doing too little too late is costly for both lenders and borrowers," says the IMF's managing director.IMF Managing Director Kristalina Georgieva.AFP The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, has asked this Sunday that "much more decisive" measures be taken to address a debt burden that, she warns, is becoming increasingly unsustainable for some countries. The head of the multilateral has also urged creditors and debtors to start restructuring processes



IMF Managing Director Kristalina Georgieva.AFP

The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, has asked this Sunday that "much more decisive" measures be taken to address a debt burden that, she warns, is becoming increasingly unsustainable for some countries.

The head of the multilateral has also urged creditors and debtors to start restructuring processes as soon as possible.

In an online event organized by the G30 group, made up of former politicians and academics, Georgieva has slipped that, although a six-month extension for the debt service freeze as agreed by the G20 will help, it will not be enough: you have to take, he remarked, more urgent measures.

Without delay.

"We are buying some time, but we have to face reality: we have to take much more decisive action" to restructure the debt of countries with unsustainable levels of liabilities.

"Doing too little too late is costly for both lenders and borrowers," he emphasized.

His words are the culmination of a week in which the Fund has warned that global debt will reach triple digits next year for the first time.

The head of the Washington-based body has not been the only authorized voice to warn about the gloomy outlook for the most indebted countries if they do not reach a quick agreement with their creditors.

Larry Summers, former US Secretary of the Treasury and member of the G30, has also pointed in the same direction: “For every mistake of arriving too early, history teaches us the innumerable mistakes of being too late.

And, in the international scene, we are not doing anything ”.

Emerging companies are by far the weakest link in the financial chain.

Source: elparis

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