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The International Monetary Fund (IMF) is urging the Group of 20 (G-20) nations to support a new plan aimed at helping poor countries reduce their debt burdens, avoid defaults, and stabilize their economies. The plan, which is still in its early stages, could involve re-profiling existing loans, debt swaps, and credit guarantees to lower costs. The IMF's push comes as many emerging and developing countries, particularly in Africa and South Asia, continue to struggle with high levels of debt. The goal is to provide countries with a range of options tailored to their specific needs, as a one-size-fits-all approach is not suitable. The G-20's support for this initiative would require cooperation between the US and China, the two major players in global debt talks. The plan would serve as a third pillar, complementing domestic revenue generation and increased support from multilateral lenders. The aim is to prevent defaults and the subsequent complex restructuring processes that follow. The IMF acknowledges that the existing Common Framework has been slow but defends its progress. [Extracted from the article]

The International Monetary Fund (IMF) has made changes to its process for supporting countries struggling with debt restructurings in order to avoid delays, particularly those attributed to China. The reforms aim to create a smoother and faster process, reducing the time between staff agreement and board signoff on an IMF program to as little as two months. The changes specifically address the requirements for financing assurances from creditors, accepting a "credible official creditor process" instead of a finalized agreement to avoid waiting for China's approval. These changes are seen as an attempt to accommodate China's internal processes while preventing countries from being left in limbo for years. [Extracted from the article]

The International Monetary Fund (IMF) has reformed its process of supporting debt restructurings by allowing programs to move forward despite holdout creditors. The reforms aim to ensure a smoother and faster process in the future. The changes come in response to frustrations with the slow pace of debt workouts under the Common Framework, a program endorsed by the Group of 20 for debt treatment in poor countries. China, the largest creditor to emerging markets, has faced scrutiny for delays in restructuring debt. The IMF is working to reduce the time between reaching an agreement with fund staff and securing creditor assurances needed for board approval. [Extracted from the article]

The International Monetary Fund (IMF) has made changes to its lending rules in order to speed up the process of debt restructuring. The reforms allow programs to move forward even if there are holdout creditors. These changes were made in response to frustration with the slow pace of debt restructurings under the Common Framework, a program endorsed by the Group of 20 for debt treatment in poor countries. The IMF is aiming to reduce the time between reaching an agreement with fund staff and securing creditor assurances to just two to three months. [Extracted from the article]

The head of the International Monetary Fund (IMF), Kristalina Georgieva, stated in an interview that the US economy is on track for a soft landing, thanks to the Federal Reserve's efforts to control inflation. Despite some negative effects from higher interest rates, the economy has not entered a recession. There is hope that the cooling of inflation and the labor market will allow the Fed to cut rates this year. Georgieva also emphasized the importance of addressing the negative impacts of globalization to prevent resentment and isolationism. Additionally, the IMF has warned about the economic damage caused by fragmentation and the potential loss of access to critical minerals needed for green technologies. [Extracted from the article]

China's rejection of a proposed debt deal between Zambia and bondholders is hindering Zambia's efforts to come out of default and challenging the effectiveness of the International Monetary Fund (IMF)-backed blueprint for sovereign restructurings. The dispute revolves around the concept of "comparability of treatment" and highlights the difficulty of incorporating China into the global financial system. Talks have stalled, and the IMF warns that the delay could jeopardize Zambia's economic recovery. The continued debt overhang and falling mining production have caused Zambia's currency to reach record lows and inflation to rise. [Extracted from the article]

China's rejection of a proposed deal between Zambia and bondholders is hindering Zambia's efforts to come out of default and challenging the effectiveness of the International Monetary Fund (IMF)-backed blueprint for sovereign restructurings. The dispute revolves around the concept of "comparability of treatment" and the terms of the Common Framework, which aims to extract comparable terms of debt relief for all creditors. Talks have stalled, and no breakthrough is expected soon. This episode highlights the difficulty of incorporating China into the global financial system and the challenges faced by multilateral institutions like the IMF and G-20. [Extracted from the article]

Sri Lanka's debt restructuring is among a few test cases of the IMF-led efforts to develop new guidelines among rich and poor countries to manage defaults. (Bloomberg) -- Sri Lanka is urging China to share with other creditors the terms of its recent $4.2 billion bilateral debt deal, a step needed to help the bankrupt nation speed up the process of restoring its finances more than a year after it defaulted. [Extracted from the article]

(Bloomberg) -- The International Monetary Fund said a memorandum of understanding between Zambia and its creditors is yet to be signed, clarifying a statement by Managing Director Kristalina Georgieva that the deal was done. Georgieva said earlier on a panel Thursday in Marrakech, Morocco, that "an MOU, memorandum of understanding of Zambia creditors, has been finally signed. [Extracted from the article]

Another private sector investor close to the talks, who asked not to be identified, said the IMF and the Paris Club seemed so intent on keeping China involved in the discussions that they were largely excluding private sector investors from substantive talks and dismissing concerns raised by them. (Bloomberg) -- Global creditors are increasingly at odds over how to level the playing field among lenders when governments default, jamming up efforts led by the International Monetary Fund to expedite sovereign debt restructurings. [Extracted from the article]

In the absence of multilateral guardrails, the IMF suggested the creation of "green corridor" agreements - to safeguard the flow of minerals needed for decarbonization - and food corridor deals - to ensure equal access across all countries and national incomes. (Bloomberg) -- Fragmented commodities markets, mainly driven by Russia's invasion of Ukraine, threaten food security and risk raising the price of cleaner energy, the International Monetary Fund warned. [Extracted from the article]

In an interview with Bloomberg Television last Friday, Georgieva said she expected global monetary policies to diverge after most major central bankers have spent the last year tightening credit conditions to slow price gains. (Bloomberg) -- The International Monetary Fund's managing director, Kristalina Georgieva, will leave for Asia on Wednesday for a tour that will take her to China, Indonesia and India. [Extracted from the article]

(Bloomberg) -- International Monetary Fund Managing Director Kristalina Georgieva expects global monetary policies to diverge after most major central bankers have spent the last year tightening credit conditions to slow price gains. Georgieva's comments come ahead of a speech by Federal Reserve Chair Jerome Powell in Wyoming later Friday, which will be intensely monitored for clues on the path of interest rates. [Extracted from the article]

Meanwhile, developing nations have amassed a quarter-trillion dollar pile of distressed debt that threatens to create a historic cascade of defaults. %USD, 13347Z, AFRICA, ALLTOP, ASIA, ASIATOP, BON, BUSINESS, CHINA, ECOTOP, FRX, GLOBALMACR, GOV, MARKETS, NORTHAM, TOP, US, WORLD, WWTOP, WWTOPAM, WWTOPAS, WWTOPEU Keywords: %USD; 13347Z; AFRICA; ALLTOP; ASIA; ASIATOP; BON; BUSINESS; CHINA; ECOTOP; FRX; GLOBALMACR; GOV; MARKETS; NORTHAM; TOP; US; WORLD; WWTOP; WWTOPAM; WWTOPAS; WWTOPEU EN %USD 13347Z AFRICA ALLTOP ASIA ASIATOP BON BUSINESS CHINA ECOTOP FRX GLOBALMACR GOV MARKETS NORTHAM TOP US WORLD WWTOP WWTOPAM WWTOPAS WWTOPEU RH8PV3T0G1KW About 60% of low-income countries are at high risk of or already in debt distress, and about 20 emerging markets have debt that's trading at distressed levels, First Deputy Managing Director Gita Gopinath said in an interview with Michael McKee on Bloomberg Television Friday. [Extracted from the article]

(Bloomberg) -- The International Monetary Fund said Pakistan has made "substantial progress" toward meeting policy commitments needed to unlock billions of dollars in loans the country needs to avoid default. Pakistan Finance Minister Ishaq Dar said last week that the IMF wants to see countries finalize commitments they've made to help Pakistan shore up its funds. IMF Sees "Substantial Progress" by Pakistan Toward Loan Program. [Extracted from the article]

"Providing clearer communications on the conditions for adjusting the monetary policy framework would help anchor market expectations and strengthen the credibility of the Bank of Japan's commitment to achieve its inflation target", he said. (Bloomberg) -- The International Monetary Fund said the Bank of Japan's surprise decision to double the cap on benchmark bond yields is a sensible step, while calling on policymakers to clearly communicate adjustments. [Extracted from the article]

Separately on Tuesday, the IMF downgraded its forecast for US grossdomestic product this year and next, warning that a surge in inflationposes "systemic risks" to both the country and the global economy. IMF Warns It Will Cut Global Growth Forecast Again With "Darkened" Outlook (Bloomberg) -- The International Monetary Fund warned it will again cutthe forecast for global economic growth as impacts reverberate fromRussia's invasion of Ukraine, pandemic-related shutdowns in China andhigher inflation. [Extracted from the article]