Edun to IMF: Set up framework to reduce cost of borrowings

Wale Edun, minister of finance & coordinating minister of the economy, says he canvassed for a reduction in the cost of borrowings at the International Monetary and Finance Committee (IMFC) meeting.

IMFC is the bridge between the 24-member resident executive board of the International Monetary Fund (IMF) and the board of governors representing the 185 nations in the IMF.

The board of governors are finance ministers and central bank governors.

Edun, in a statement on Saturday, said he made a series of suggestions at the meeting which was held at Marrakech, Egypt.

The minister said he emphasised the need for a robust framework that would reduce the cost of borrowings and improve global liquidity for the purpose of settling the balance of payment and fiscal crisis.

He highlighted the impact of longer interest rates on debt service burdens and capital flow reversals. 

“I urged for continued multilateral cooperation to tackle debt challenges which supports the G20 Common Framework and the Global Sovereign Debt Roundtable,” the minister said. 

“I emphasized the strengthening the IMF Global Financial Safety Net to best serve the needs of the membership, especially the more vulnerable ones. 

“This includes the successful completion of the 16th General Review of Quotas and the creation of 3rd Chair for Africa -to be occupied by Sub-Sahara Africa.”

Edun said part of the discussion that came up during the meeting was the increasing poverty level in low-income countries and the replenishment of the resources of the International Development Association (IDA). 

He added that “we emphasized access to investment capital particularly from the private sector and at a large scale; as well as the need to support private sector development”. 

The finance minister said Nigeria’s economic reforms were acknowledged and applauded during various plenary and bilateral meetings that involved World Bank, International Finance Corporation (IFC)
European Bank for Reconstruction and Development (EBRD) and international banks.

Edun said the international institutions told him the economic reforms are capable of putting Nigeria on the path to economic recovery. 

He said the World Bank was urged to focus on the twin goals of poverty eradication and shared prosperity. 

The Bretton Woods institution was encouraged by Edun to improve its operating and financing models in order to cope with increasing trans-border and global challenges and avoid needless trade-offs.