IMF to push G20 for plan to lower debt costs

Big issue: IMF managing director Kristalina Georgieva speaking at a news conference in Luxembourg. Some estimates put the total annual debt service costs for poor countries at more than US$400bil. — Bloomberg

WASHINGTON: The International Monetary Fund (IMF) is seeking to rally Group of 20 (G20) nations around a new effort to help poor countries reduce debt burdens, avoid defaults and stabilise their economies.

While the plan is at an early stage, it could encompass re-profiling of existing loans, debt swaps, and credit guarantees that would help lower costs, Ceyla Pazarbasioglu – head of the fund’s powerful Strategy, Policy and Review Department – told reporters at a briefing in Washington on Wednesday.