UN chief says debt easing tools are not good enough

Antonio Guterres, the secretary-general of the United Nations, called on the Group of Twenty countries to do more to provide financial justice on Wednesday, stating that the current debt relief mechanisms were far from sufficient to meet global vulnerabilities.

The remarks were made by Guterres while on a visit to South Africa, which this month assumed leadership of the global forum of developed and emerging countries, making it the first African nation to do so.

The “Common Framework” of the G20, a debt relief framework that was introduced during the COVID-19 epidemic to assist highly indebted nations in rapidly getting back on track, has come under fire after sluggish restructurings in nations like Zambia.

“I acknowledge all of the G20’s efforts with the ‘Framework,’ but let’s be clear. Guterres stated during a G20 gathering in Johannesburg that “we are far from having an instrument that can address the debt problem that exists at the global level.”

“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.”

In his address to G20 sherpas and finance officials, Guterres also emphasized the need for reforms to global governance institutions in order to better serve African nations.

He stated that increasing concessional finance and the function of multilateral development banks should be expanded, but that increasing GDP shouldn’t be the exclusive goal.

“It’s very important to look especially also at vulnerability,” Guterres stated.

At the same occasion, South African Finance Minister Enoch Godongwana stated that his nation’s G20 presidency will prioritize resolving debt problems.

He said that “debt sustainability cannot be solved through the Common Framework alone” and that South Africa would suggest forming an expert council to concentrate only on Africa’s financial requirements.