Statement by H.E. Agak Achuil Lual - 105th Meeting of the Development Committee - Debt Work for Development and Macroeconomic Stability

Jul 19, 2026

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Statement by H.E. Agak Achuil Lual, Minister of Finance and Planning of the Republic of South Sudan, delivered at the 105th Meeting of the Development Committee. The statement focuses on making debt work to support development and macroeconomic stability amid the COVID-19 shock, rising global public debt, and widening fiscal constraints in Africa. It highlights debt distress trends, the need for closer creditor coordination, and the importance of timely debt relief, restructuring, transparency, and technical support from Bretton Woods Institutions, including consideration of the Russia-Ukraine war’s impacts.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages5

Reading Time13 min

Making Debt Work for Development and Macroeconomic Stability

COVID-19 shock and rising public debt

Africa’s debt distress and financing gaps

Ukraine crisis, sanctions, and macroeconomic uncertainty

Changing debt structure and resolution challenges

Role of Bretton Woods Institutions and private creditors

G20 Debt Service Suspension Initiative (DSSI) and next steps

Public Disclosure Authorized Public Disclosure Authorized DEVELOPMENT COMMITTEE (Joint Ministerial Committee of the Boards of Governors ofthe Bank and the Fund on the Transfer of Real Resources to Developing Countries) ONE HUNDRED AND FIFTH MEETING WASHINGTON, DC – APRIL 22, 2022 DC/S/2022-0008 April 22, 2022 Statement by H.E. Agak Achuil Lual Minister of Finance and Planning Republic of South Sudan For Africa Group 1 Constituency Statement by H.E. Agak Achuil Lual Minister of Finance and Planning Republic of South Sudan For Africa Group 1 Constituency 105th Meeting of the Development Committee April 22, 2022 Washington, DC (I) Making Debt Work for Development and Macroeconomic Stability 1. As the COVID-19 pandemic triggered a collapse in economic output during the past two years, Governments have been forced to increase spending to provide essential services and offer unprecedented fiscal support to stimulate their economies. Unfortunately, new COVID-19 variants have also perpetuated disruptions to economic activity. Consequently, global public debt soared to $226 trillion, or 256 percent of GDP, in 2020 and to a new record high of nearly $300 trillion by the end of 2021. Borrowing by governments accounted for slightly more than half of this increase. The IMF estimates a rise in public debt/GDP ratio in 2021 to around 125 percent in advanced economies, 65 percent in emerging markets, and 60 percent in low-income countries. For Africa, the African Development Bank (AfDB) estimates a rise in debt/GDP ratio from 60 percent in 2020 to 75 percent in 2021, while some hard-hit countries may need to pay more than 50 percent of their annual foreign exchange earnings to continue servicing their debts on time. 2. Before the pandemic, several African countries were already in debt distress, and the list of countries has since increased. According to the World Bank, 50 percent of IDA-eligible countries are either at high risk of debt distress or are already in debt distress. Overall, the continent has seen an increase of nearly 5.0 percent in debt due to the pandemic crisis. The debt of low-and middle-income countries had risen to a record high of $726.6 billion by June 2021, more than double the total fiscal revenue in 2019 and is currently the highest of any developing region. This forces governments to divert more resources towards debt servicing and less for development. Despite sizeable domestic adjustments, the IMF estimates that Africa will need an additional $1.2 trillion in total financing through 2023. African leaders also indicated at the Financing African Economies Summit that Africa will face a fiscal spending deficit of about $285 billion over the same period. Therefore, we urge the Paris Club, G20 and other creditors to collaborate closely with the Bretton Woods Institutions (BWI) as they increase their support to enhance debt management, domestic resource mobilization and debt restructuring for distressed LICs, mainly African countries. 3. Moreover, the recent very disturbing developments in Ukraine, which have triggered multiple sanctions, have negatively impacted food and energy supply, prices, and interest rates, creating uncertainty in global markets. The current environment of rising interest rates and slower projected growth will inevitably increase debt service burdens and further reduce borrowing countries' fiscal space and investment capacity. Without swift preemptive and corrective measures to mitigate the current macroeconomic and debt sustainability environment, many of our developing countries will fall further into debt distress. We would welcome debt analysis and support offered by the BWIs in this area, factors in the impact of the Russia-Ukraine war on the economic growth and debt sustainability of developing countries, including Middle-Income Countries (MICs) . 4. Africa’s experience with debt resolution has historically been complicated and protracted. Af

FAQs

What macroeconomic conditions made debt an urgent issue for developing countries?

The statement links urgency to the COVID-19 driven collapse in economic output, subsequent fiscal support needs, and further disruptions from new variants. It also cites rising interest rates and slower growth that increase debt service burdens and reduce fiscal space.

Why does the statement urge closer coordination among creditors and Bretton Woods Institutions?

It argues that creditors like the Paris Club and G20 should collaborate closely with Bretton Woods Institutions to strengthen debt management, domestic resource mobilization, and debt restructuring for distressed low-income countries, mainly in Africa.

What does the statement say about the G20 Debt Service Suspension Initiative (DSSI)?

It notes that DSSI, effective May 1, 2020, delivered more than $10.3 billion in relief to over 40 eligible countries, but emphasizes that its short-term nature only delayed debt service. It therefore urges further action by Bretton Woods Institutions and G20 creditors.

Jul 19, 2026

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