Delaying global financial reforms can lead to deeper economic crises – GITFiC

The Ghana International Trade and Finance Conference (GITFiC) has made a case for the immediate adoption and implementation of its Global Debt Initiative to ensure long-term relief for the economies of least least-developed and developing nations.Under the Initiative, the GITFiC proposes comprehensive debt cancellation for debtor nations, especially Africa, as the most effective way to relieve Governments from suffocating debts, in the wake of the economic distress occasioned by the COVID-19 pandemic and the Russia-Ukraine war.Sharing key insights of the GITFiC's Global Debt Initiative at its 8th International Conference in Accra, Mr. Selasi Koffi Ackom, Chief Executive Officer, GITFiC, cautioned that failure to act now could lead to deeper crises for the least-developed countries with potential catastrophic global consequences.'We are not just calling on the international community to listen, we are urging swift action. Global debt is not just a financial issue; it is a development challenge that affe cts livelihoods, progress, and the future of global equity,' he said.The GITFiC brought together stakeholders at the Accra International Conference Centre to address the critical issues shaping the global financial architecture.The GITFiC's Global Debt Initiative is in collaboration with the United Nations, Ghana Catholic Bishops' Conference, African Union, African Development Bank and other international stakeholders.Mr Ackom said the current global economic crises justified the necessity and timeliness of the Global Debt Initiative.He said history had shown that existing frameworks to address debt relief, such as the Debt Service Suspension Initiative only provided temporary relief and was not sustainable.'The time for action is now. The world cannot delay in reforming the global financial system to make it more inclusive, fair, and responsive to the needs of all countries,' Mr Ackom said.According to the African Development Bank, in 2024, African countries are projected to allocate around US$74 billion to debt service, marking a staggering 335 per cent increase compared to its level of US$17 billion in 2010.Very Reverend Father Clement Kwasi Adjei, Secretary General, Ghana Catholic Bishops' Conference, said the call for reforms in the global economic architecture could not be postponed as the world faced 'profound economic challenges.'He said economic prosperity 'should not be the privilege of a few' and advocated fair trade practices and equitable debt relief to bring relief to the citizens of developing countries.Mr Abdul-Fatawu Hakeem, Head of Debt Policy Unit, Ministry of Finance, said the impact of international credit rating institutions on Africa's fiscal and monetary policy was critical, as those institutions played significant roles in shaping the economic narratives, the cost of funding by sovereigns, as well as influencing where funds are channelled.'The Ministry of Finance aligns with the theme of the conference especially at a period where innovative financing options are critic al to address economic challenges and ameliorate the plight of our citizens,' he said.Source: Ghana News Agency