As part of the Annual Meetings Programme, the Minister of Finance participated in the 108th Meeting of Ministers and Governors of the Group of 24 on October 11, 2022. The meeting's topic was "Securing a Sustained Post-Pandemic Recovery," and it was held under the auspices of the Group of 24.
The summit served as a forum for discussing important topics on which the international community and international financial institutions, such as the International Monetary Fund and the World Bank Group, may significantly increase the amount of assistance they provide to emerging economies.
This event is taking place against the backdrop of a confluence of external shocks, in notably the covid epidemic, the ongoing ramifications of the Russia-Ukraine war, and rising concerns about the imminent effects of climate change.
Mr. Ofori-Atta told the G-24 Ministers and Governors meeting, "There is a need to put the spotlight on the economic consequences of climate change," particularly as it relates to developing countries, which are the countries that contribute the least to climate change. "There is a need to put the spotlight on the economic consequences of climate change," he said.
Only in the past two decades has climate change been responsible for the loss of a fifth of the wealth of climate-vulnerable countries. This means that climate-vulnerable countries have lost approximately $525 billion due to global warming caused by human activity, as opposed to the natural climate cycle.
This has a horrifying impact on people's life and their ability to make a living. Now is the moment to take action." Mr Ofori-Atta remarked.
After that, the Minister of Finance arranged a meeting with Abebe Aemro Selassie, the Director of the Africa Department of the International Monetary Fund, in order to go forward with negotiations with the IMF.
Formal negotiations are scheduled to resume following the Annual Meetings between the team representing the Government of Ghana, led by Mr. Ofori-Atta, and the team representing the International Monetary Fund, led by Stéphane Roudet, IMF Mission Chief.
During the talks, the implementation of policies that provide the conditions for a stable macroeconomic environment, sustainable growth, and the sustainability of debt will be given the highest priority.
In his address to the G-24, Mr. Ofori-Atta emphasized the need to "promote the deployment of more debt for climate swaps in order to solve the dual challenge of climate change and rising debt in order to develop economic resilience among climate-vulnerable countries."
Debt for Climate (DFC) swaps allow governments to make payments on their external debt in their own currency rather than in a foreign currency. This enables the countries to finance climate projects domestically on conditions that have been agreed upon. DFC swaps have the potential to lower overall levels of debt while also liberating financial resources that may then be put toward environmentally conscious investments.
source:Ghanaweb.com
Post a Comment