MEFMI Hosts Workshop on Public Debt Restructuring

MEFMI in collaboration with the Commonwealth Secretariat conducted a virtual regional workshop on Public Debt Restructuring from 24 to 28 July 2023.

In his opening remarks, Dr. Louis Kasekende, MEFMI Executive Director, highlighted that the medium and long-term debt sustainability indicators across most developing countries, including the MEFMI region worsened due to the outbreak of the COVID-19 pandemic and the Russia and Ukraine war.

Dr Kasekende underlined that it is against this background that the international community launched debt restructuring initiatives to help countries navigate the crisis. Recent initiatives include the Debt Service Suspension Initiative (DSSI) and the Common Framework. He emphasized, however, that debt restructuring on its own is not the only solution for long-term sustainability, but significant reforms were needed to restore macroeconomic stability, which includes a) improving fiscal discipline by adopting fiscal rules that boost confidence to provide an anchor for policymakers and investors; and b) fiscal commitment to investments in preparedness for natural disasters and health emergencies; among others.

A total of 102 officials attended the workshop, of which, ninety-three (93) were from MEFMI member countries namely: Angola, Kenya, Lesotho, Malawi, Mozambique, Namibia, Tanzania, Uganda, Zambia and Zimbabwe. Nine (9) participants were from South Sudan. Officials from South Sudan attended the workshop as guest participants. Participants in the workshop were drawn from central banks, and ministries of finance, economic planning and development.

The workshop was delivered virtually, and presentations on key topics and country experiences, namely Ghana and the Caribbean (Saint Kitts and Nevis, Grenada and Jamaica). The main topics presented were as follows: a) Overview of debt restructuring; b) Public debt trends and debt vulnerabilities; c) Recent external debt restructuring initiatives; d) The role of debt data quality and transparency in debt restructuring; e) Domestic debt restructuring: key issues/considerations; and f) Restructuring through innovative financing and embedded options.

The workshop was facilitated by one (1) Accredited Fellow, Dr. Nebson Mupunga from the Reserve Bank of Zimbabwe; and one (1) Regional Debt Expert, Mr. José Maurel, from the Debt Management Practice in Mauritius. In addition, three (3) resource persons were from the COMSEC as follows Ms. Joanne Allin, Ms. Delia Cox, Dr. Mohamed Aazim. The country cases were shared by Ms. Delia Cox (COMSEC), Mr. Adbul Fatawu, Ministry of Finance (Ghana), Mr. Andrew Foster, Ministry of Finance and Public Service (Jamaica), and Mr. Kerry Pierre, Ministry for Finance (Grenada). The experiences shared provided an opportunity for participants to learn from peer countries in other regions.

By Cristina Dimande