Jakarta (ANTARA) - The International Monetary Fund (IMF) urged G20 leaders to improve global financial architecture, especially in terms of debt resolution, and improve the global monetary security network.

"The international community has the responsibility to seek a solution for the most vulnerable of our global family members," Managing Director of IMF Kristalina Georgieva noted in an official statement received here on Monday.

With a decline in global growth in 2023, recorded at a rate below the historical average, people worldwide are struggling to meet their needs, she pointed out.

Georgieva expressed her utmost support for the improvement in debt architecture and debt repayment effectiveness and efficiency, considering several countries struggle with their state of debt.

The issues with debt, which persisted even before pandemic, is exacerbated by the COVID-19 pandemic and the war between Russia and Ukraine. The debt issue is more prevalent among low-income developing countries with limited policy, whose needs for their development are high.

Hence, Georgieva underscored the importance for G20 countries to improve the debt architecture. The group has pursued such measure in 2020 through the Debt Service Suspension Initiative (DSSI) and forming the Common Framework (CF) to address issues surrounding debts.

"Afterwards, CF gives debt operation for Chad. Now, it is very important to resolve Zambia's debt restructurization, establish a Creditor's Committee for Ghana, and pursue collaboration with Ethiopia," she elaborated.

Nevertheless, a predictable, on time, and orderly process is deemed necessary for countries included in CF's authority, or excluded, such as Sri Lanka or Suriname, Georgieva remarked.

The IMF has increased the ceiling of its loans, as some of its members were struck with significant economic predicament in the last few years. The initiative was taken to improve the global financial security network.

Through standard loan and emergency funding, the IMF has since the onset of the pandemic approved some US$272 billion for 94 countries out of which 57 are low-income nations.

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Translator: Agatha Olivia V, Mecca Yumna
Editor: Sri Haryati
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