International Monetary Fund Managing Director Kristalina Georgieva said on Friday debtors and creditors made “tangible progress” on debt restructuring issues this week, but called for early reprofiling of debts for countries facing problems.
A new sovereign debt roundtable was creating a framework to accelerate work on debt restructurings, Georgieva told a news conference during the IMF and World Bank spring meetings in Washington, noting that countries had reached a common understanding of the role that multilateral development banks could play, by providing positive net flows.
But she said it was important for countries nearing debt distress and their creditors to move forward on reprofiling debt levels before a full restructuring was needed, especially given the risk of a further tightening of financial conditions.
