Dec. 11, 2024

The United Nations Secretary-General Antonio Guterres said on Wednesday that existing debt relief mechanisms were far from adequate to address global vulnerabilities, calling on the Group of Twenty nations to do more to deliver financial justice.

Guterres made the comments during a visit to South Africa, which became the first African country to lead the G20 when it took the helm of the international forum of developed and developing economies this month.

The G20’s “Common Framework”, a debt relief architecture launched during the COVID-19 pandemic to help heavily-indebted countries get back on track quickly, has been criticised following slow restructurings in countries including Zambia.

“I recognise all the efforts the G20 has made in relation to the so-called ‘Framework’, but let’s be clear. We are far from having an instrument able to address the debt problem that exists at global level,” Guterres told a G20 event in Johannesburg.

“We need meaningful solutions to address the debt crisis, so countries can invest in meeting the basic needs of their people and drive long-term development.”

Guterres also used his speech to G20 sherpas and finance officials to underscore that global governance institutions needed to be reformed to serve African countries better.

He said there should be an enhanced role for multilateral development banks and greater concessional funding, but that boosting gross domestic product should not be the only targeted metric.

“It’s very important to look especially also at vulnerability,” Guterres said.
South African Finance Minister Enoch Godongwana told the same event that addressing debt vulnerabilities would be a focus of his country’s G20 presidency.

South Africa will propose creating an expert panel to focus specifically on Africa’s financing needs, he said, adding that “debt sustainability cannot be solved through the Common Framework alone”.

REUTERS