South Africa has announced its intention to prioritize innovative approaches to debt restructuring and provide greater support for countries facing liquidity challenges during its G20 Presidency.
The G20 introduced the Common Framework for Debt Treatment in 2020 to assist heavily indebted countries with managing their financial obligations. However, the initiative has faced criticism for its slow progress, with some creditors opposing its implementation.
National Treasury Director-General Duncan Pieterse emphasized South Africa's commitment to advocating for borrower countries during its tenure.
"Our focus will include enhancing G20 efforts to improve debt restructuring processes, supporting nations dealing with liquidity challenges, and encouraging the development of local currency markets to boost domestic savings and promote debt transparency," Pieterse said.
The upcoming presidency aims to address longstanding concerns over debt relief mechanisms and promote sustainable economic solutions for vulnerable nations.