By Andrea Shalal
BANGKOK, Oct 15 (Reuters) – The United States views Senegal’s request for debt restructuring as a “great example” of progress on the Group of 20 Common Framework, and wants to see work on the case completed in less than a year, a top US Treasury official said on Thursday.
Erin Browne, Treasury undersecretary for international affairs, co-chaired a meeting of the Global Sovereign Debt Roundtable on Wednesday together with the heads of the International Monetary Fund and World Bank.
The group, which also includes creditors, borrowers and private sector players, released its progress report on the sidelines of the IMF-World Bank annual meetings in Bangkok. It was set up to help speed up treatments under the Common Framework following protracted processes in Zambia and Ghana.
“We’ve made really good progress in terms of the sovereign debt architecture, particularly with sovereign debt restructurings,” Browne told Reuters in an interview.
“We highlight Senegal as a great example of moving forward under the Common Framework sovereign debt restructuring.”
Senegal is in the midst of a debt treatment that aims to return its finances to a sustainable trajectory.
“We want this done quickly, transparently, and as expeditiously as possible, so that while there’s not a clear timeline … some in the room were saying in less than one year, and I think that that’s a goal that we should all be aiming for,” Browne said.
IMF Managing Director Kristalina Georgieva on Wednesday also expressed optimism that Senegal would be able to renegotiate its debts, and said the IMF would support Senegal with a staff-negotiated agreement for a $2.2 billion program.
Browne said the debt roundtable included robust conversation about expanding which countries could seek debt treatments, beyond the poorest countries initially included.
Discussions on that issue would continue next year, Browne said, adding that participants had not discussed names of specific countries at Wednesday’s meeting.
Browne said Thursday’s meeting of G20 finance ministers went well, touching on issues such as global imbalances, modernizing the global financial system, including through streamlining regulations, and global sovereign debt issues, as well as financial literacy.
(Reporting by Andrea Shalal; Editing by John Mair)
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