Nearly a quarter of emerging countries and more than 60% of low-income countries face sometimes severe difficulties related to their debt, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Tuesday.
“If we look at the situation of emerging countries, most of them are doing well because they have invested in foreign exchange reserves and are doing macroeconomic reforms. But 25% of them are in difficulty or close” due to their debt, he said. Kristalina Georgieva, interviewed at an online conference.
A situation that has been complicated since the beginning of the conflict between Russia and Ukraine since “16 countries have requested financial aid for a total of about 90,000 million dollars” in the last six months.
The dollar’s rise will continue
“We know that monetary tightening and the rise in the dollar are just beginning,” added Kristalina Georgieva, who expects a greater impact on financing conditions in emerging countries.
In this context, if the IMF intends to strengthen its aid tools for countries in difficulty, its managing director has launched an appeal to the main public and private creditors, in particular China, recalling that “the more financing provided to the States , the greater is your responsibility” towards them.
“It is in your interest, as creditors, to prevent difficulties from breaking out,” he insisted.
Source: BFM TV
