Question

In light of recent global economic developments (2024-25), a primary challenge for the International Monetary Fund (IM

Q: Answer-In light of recent global economic developments (2024-25), a primary challenge for the International...

Following the COVID-19 pandemic and the subsequent period of high global inflation and interest rates, many low and middle-income countries are facing severe debt sustainability challenges . Countries like Sri Lanka, Ghana, Zambia, and Ethiopia have defaulted or are in debt distress. A key role of the IMF in this context is to provide financial support through lending programs and to act as a catalyst and coordinator for debt restructuring negotiations between borrowing countries and their creditors both official bilateral lenders like the Paris Club and China, and private bondholders. This has been a dominant theme in global economic news.