G-24: Nigeria, other developing nations need cheaper financing — Oyedele

Developing countries have demanded sweeping reforms of the International Monetary Fund (IMF), improved debt relief mechanisms and increased climate financing under Nigeria’s leadership of the Group of Twenty-Four (G-24). The demands were contained in the communiqué issued by the group’s 116th ministerial meeting in Bangkok, Thailand and obtained by the News Agency of Nigeria. Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, chaired the meeting held during the IMF–World Bank Annual Meetings.

The group called for reforms that would strengthen developing countries’ representation in global financial institutions and improve their access to affordable development financing. It warned that geopolitical tensions, rising commodity prices, trade restrictions and increasingly frequent extreme weather events were threatening economic stability. According to the communiqué, these developments were raising borrowing costs, weakening currencies and increasing debt distress in emerging markets and developing economies.

The ministers expressed particular concern about highly indebted countries struggling with limited fiscal resources, external financing pressures and declining development assistance. They consequently urged the IMF to accelerate reforms of its quota system to reflect changing economic realities and strengthen developing countries’ voting power. It insisted that the reforms must protect the representation of emerging economies and the world’s poorest countries.

The ministers also urged the IMF to adopt greater flexibility in designing financial assistance programmes for countries facing economic difficulties. They maintained that IMF-supported programmes should safeguard social spending, encourage investment and avoid excessive adjustments capable of undermining economic recovery. On sovereign debt, the group warned that mounting repayment obligations were restricting developing countries’ capacity to finance infrastructure, healthcare, education and economic transformation.

“Debt vulnerability is a major barrier to inclusive growth in many developing economies,” the communiqué stated. The ministers consequently advocated more predictable debt restructuring, greater transparency, improved credit-rating assessments and stronger coordination among creditors. They welcomed initiatives aimed at strengthening sovereign debt…

By Babajide Komolafe, Economy Editor, in Bangkok, Thailand The Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development, G-24, has called for improved financing conditions, faster debt restructuring and stronger international financial cooperation to support Nigeria and other developing economies facing mounting debt and development financing challenges. Read Also: Nigerians still suffer high cost of living, despite economic growth — IMF Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, who is Chairman of the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development, G-24, made the call at a press conference on the outcome of the meeting of the Group, during the ongoing International Monetary Fund (IMF)/World Bank Annual Meetings in Bangkok, Thailand. He said developing countries needed a more responsive international financial system capable of addressing their economic vulnerabilities, supporting growth and ensuring that debt obligations did not undermine development priorities.