Efficient Debt Management in African States: Minister Adama Coulibaly Proposes Innovative Solutions in Casablanca
At the special invitation of the organizers of the Africa Financial Industry Summit (AFIS 2024), an Ivorian delegation led by Adama Coulibaly, Minister of Finance and Budget, participated in the Summit held on December 9-10, 2024, in Casablanca, Morocco.
As a panelist on the theme "Beyond Restructuring: How to Build a Fair Architecture for African Debt?", Minister Adama Coulibaly emphasized that, to improve existing debt restructuring frameworks, current procedures should be expedited to shorten the negotiation timelines. Additionally, a partial or total suspension of debt during negotiations would help countries by easing budgetary pressures.
Furthermore, to make restructuring mechanisms more equitable, the minister proposed that the contractual framework for new borrowings be strengthened by including collective action clauses that account for the participation of private lenders in potential restructurings.
The minister also suggested that climate emergency clauses be included in future financing agreements to allow for debt repayment deferrals in the event of major climate crises or natural disasters.
Regarding Special Drawing Rights (SDRs), Adama Coulibaly expressed concern over the fact that, during the recent SDR allocation following global shocks, Africa, with a population of about 1.5 billion people, received only 5% of the total $630 billion USD allocated.