World · Africa · 1 hr ago
G-24 urges cheaper financing as developing economies face high debt costs
Nigeria’s finance minister Taiwo Oyedele, who chairs the G-24, raised concerns about borrowing costs at IMF and World Bank meetings in Bangkok, Thailand.
Developing nations are estimated to pay about $500 billion more for debt than developed countries.
Heavy debt payments can leave governments with less money to support growth, jobs and public needs.
Developing economies also face pressure from supply shocks, rising food prices and costly borrowing.
After its meetings, the G-24 urged the IMF and World Bank to provide vulnerable countries with more accessible, affordable loans.
G-24 director Iyabo Masha said Senegal was close to resolving a debt dispute with creditors, a process she said could offer a model for other countries.
G-24 members urged the International Monetary Fund and World Bank to provide more accessible and affordable concessional financing to vulnerable countries.
G-24 chair Taiwo Oyedele said developing nations were paying roughly $500 billion more for debt than developed countries.
He said debt vulnerabilities were a major barrier to inclusive growth.
G-24 Secretariat director Iyabo Masha said debt leaves countries with fewer resources to finance growth.
- Who
- The Group of 24, chaired by Nigeria’s Finance Minister Taiwo Oyedele.
- What
- G-24 members urged the IMF and World Bank to provide more accessible and affordable concessional financing to vulnerable countries.
- When
- Tuesday, at the annual meetings of the IMF and World Bank.
- Where
- Bangkok, Thailand.
- Why
- High debt costs and debt vulnerabilities are restraining growth in developing economies.
This story does not have two clearly opposing sides.
Taiwo Oyedele spoke about high borrowing costs on the sidelines of the IMF and World Bank annual meetings in Bangkok.
G-24 members urged the IMF and World Bank to provide more accessible and affordable concessional financing to vulnerable countries in the near term.
- Estimated extra debt costs
- Developing nations pay roughly $500 billion more than developed countries.
- G-24 chair
- Taiwo Oyedele
- G-24 Secretariat director
- Iyabo Masha
- Meeting location
- Bangkok, Thailand
What people are saying
What we have seen by members of the G24 and across, particularly the developing countries such as those in Africa, is an increasing body of not just high debts, but high costs of debts
These developments impact emerging markets and developing economies’ progress towards achieving inclusive and job-rich economic transformation
Debt is something that restrains growth, because countries then do not have enough resources to finance further growth, or they are spending most of their resources just paying off the debt
Sources
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