The trend of rising interest rates has increased the debt burden and reversed the flow of capital from the developed world to the developing world, according to Wale Edun, the Nigerian minister of finance.
Edun said this in his first speech as the Chairman of the African Governors’ Forum of the World Bank at the annual meeting of the World Bank and International Monetary Fund (IMF) in Marrakech, Morocco.
The Finance Minister, who represented 22 Sub-Saharan countries at the event, called for continued multilateral cooperation to tackle debt challenges. He also emphasised the importance of strengthening global financial safety in order to serve the niche of the most vulnerable, whether it be a country or an individual who is needy and worthy of help.
“In terms of debt restructuring, what you do is look for opportunities to improve the condition. The world we are in is a world of high-interest rates, and debt is becoming more unaffordable, so if you have cheap financing, you better hold on to it as long as you can and you are comfortably servicing it, and in a case where you can’t, you need to find the money to pay it down or make sure that it is not a burden,” Edun said.
He also talked about Nigeria’s strategic positioning to attract investment. “The narrative is that with the bold and courageous steps that Nigeria has taken, we are now at the forefront and almost number one on people’s lists when they want to look at where to invest.”