Follow Us on Google
From Uche Usim, Abuja
The Group of 24 Countries (G-24), on Tuesday, expressed frustrations over the rising interest on loans slammed on developing countries by developed nations despite being members of the same bloc.
The G-24 nation said the development was worrisome and economically injurious to them.
The G-24 is a group of countries that work together to coordinate the positions of developing countries on international monetary and financial issues. Although there are some exceptions, the G-24 as a whole contains many nations with excellent growth potential for investors.
At a media briefing at the ongoing Spring Meetings of the IMF and World Bank, in Washington DC, yesterday, the Chairman of the group, Mr. Ralph Recto said member countries were terribly pressed by various economic challenges and need a breather by lowering interest rates.
He said: “Today, we are hard-pressed on multiple fronts with not just one, but two are worse in trade war, mounting debt burdens and an existential climate crisis. One thing is clear.
“Any slowdown in the global economy is bound to hit developing countries the hardest if we fail that they swift and corrective actions today, the developing world is on the brink of falling further behind.
“We are running against time and inaction is not an option. When circumstances have made it more difficult to achieve a sustainable and inclusive future by 2030.
“We believe it remains possible with the right priorities and concerted international cooperation.
“As developed countries we acknowledge the critical need to address the underlying structural weaknesses of our economies.
“Therefore, we are strongly committed to prioritizing inclusive growth strategies that facilitate structural transformation, sound good fiscal management, and macro economic stability.
“We believe that these measures will not only improve our economic resilience, but enhance our ability to attract and leverage private and external investments as well.
“Access to concessional financing is of paramount importance for developing economies to mount a strong defense against these compounding challenges.
“With this, we call on international financial institutions to scale up support to vulnerable countries through more innovative and responsive financing solutions that will help us sustain productivity, enhance long term growth prospects, and increase resilience to economic shops.
“In particular the ambitious replenishment, expedited disbursement and efficient delivery of the International Development Association an urgent matter as it serves as a critical lifeline for developing nations.
“But this alone will not be enough. More decisive steps are required to reinvigorate the global financial safety- net and the development financing landscape.
“We must remember that we are all interconnected for better or for worse. Now more than ever, we need to intensify multilateral cooperation to reverse headwinds and restore global stability, if we are to meet our development and climate goals by 2030.
“We all know that many of the countries and members of the G-24 are already saddled by a lot of debt and high interest rates.
“So if interest rates further go up, it will be even more challenging. Definitely that will affect growth and employment opportunities in our respective countries so for sure it will not be good for any of us.”
