IMF chief sees 'tangible progress' on debt restructuring difficulties, urges nations to seek help earlier

Washington: Kristalina Georgieva, the head of the International Monetary Fund, stated on Friday that debtors and creditors made “tangible progress” this week on debt restructuring difficulties, but urged nations with rising debt troubles to seek assistance sooner in the process. Georgieva stated at a press conference held during the IMF and World Bank spring meetings in Washington that a new roundtable on sovereign debt was assisting in the acceleration of work on debt restructurings. She said that this week’s discussions had led to a shared understanding of the potential contribution that multilateral development banks might make by generating positive net flows for underdeveloped nations. However, before a comprehensive restructuring was necessary, she advised governments that were close to entering a state of debt distress and their creditors to proceed with recalibrating debt levels. “I very much hope that we will take, proactively, steps to prevent the need (for) restructuring by reprofiling debt early, by providing financial support to countries so they can step up economic activities … and avoid a more massive debt restructuring process,” Georgieva said. “We have to be, of course, prepared, should global conditions worsen. Imagine a further tightening of financial conditions, that increases the burden on these countries,” she added. “Please, let’s act before the situation becomes dire.” Georgieva said the IMF would continue to work closely with the 20 African countries with heavy debt burdens to avoid getting to the point where restructurings were needed. Spanish Economy Minister Nadia Calvino, who chairs the International Monetary and Financial Committee (IMFC), the IMF’s steering committee, said the week’s meetings had been “particularly productive” on the debt front. Debt roundtable participants - creditor and borrowing countries, as well as private-sector participants and international financial institutions - will reconvene in mid-May for a workshop to discuss how different creditors are treated in a restructuring case. That has been a big concern for China, the world’s largest sovereign creditor, which has been unwilling to accept losses on loans unless private-sector creditors and multilateral development banks shoulder their share of the burden. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.