COP28: IMF considers climate change debt swap deal with other countries including Nigeria
As Nigeria’s exterior debt will increase, reaching $43.2 billion as of the second quarter of June 2023, the International Monetary Fund (IMF) has introduced a climate-smart debt swap settlement to assist indebted countries cut back their debt. introduced that it’s contemplating getting into into an settlement. Return to guard the ecosystem.
Disclosing this in an interview with reporters at COP28, IMF Managing Director Kristalina Georgieva stated the worldwide physique nonetheless doesn’t have a transparent mechanism for the way climate swap settlement debt can be managed. Ta.
She says decarbonization is troublesome for countries with excessive ranges of debt.
“Decarbonization is very difficult for countries with high levels of debt. Climate is one issue for the same country, debt is another. We are very interested in debt for climate swaps. ,” Georgieva stated on the sidelines of the continuing COP28.
“What we want to do is come up with key performance indicators so that countries can predict the future of climate action if they wish and take out debt to fund these actions. You will be able to get an exemption,” she defined.
“We’re not there but, however we’re it.” He stated the variety of countries in debt disaster is comparatively small, noting that the variety of countries in debt disaster is sort of giant.
“And we see levels increasing by 1 percent over the next few years.”
African countries, including Nigeria, are pushing for debt reduction and, when a deal is finalized, will use the proposed initiative to supply further help by planning climate motion. Climate finance might be expanded.
Source: dailypost.ng