National Treasury says there’s an urgent need to improve debt restructuring
This comes as many developing countries including those in Africa still face low growth that makes it difficult to reduce poverty, tight financing conditions and high levels of debt.
JOHANNESBURG - National Treasury says there’s an urgent need to improve debt restructuring and to address liquidity challenges faced by developing economies as South Africa sets the tone for its G20 Presidency.
This comes as many developing countries including those in Africa still face low growth that makes it difficult to reduce poverty, tight financing conditions and high levels of debt.
South Africa is currently hosting G20 member states in Sandton where calls to address the ballooning debt is high on the agenda.
The high levels of debt have again raised concerns among global leaders meeting in Sandton for the start of the 2025 G20 term led by South Africa.
According to the latest estimate by the United Nations - Africa’s external debt sits above $600 billion while debt servicing costs are almost $100 billion.
Speaking at the start of the meeting of the finance track on Wednesday, the Director-General at the National Treasury - Duncan Pieterse - reaffirmed a commitment to improve debt sustainability.
“During our presidency, there will be a very strong focus on enhancing debt sustainability through a comprehensive approach, which will include closer G20 attention on finding ways to improve debt restructuring, supporting countries with liquidity challenges and also encouraging the development of local currency markets to attract domestic savings and improve debt transparency.”
After the COVID-19 pandemic, the G20 bloc is among the institutions that led the charge in absorbing some of the global shocks.
But some of the policies put in place are yet to deliver.