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South Africa Panel Urges G20–IMF Debt Refinancing Facility Ahead of Summit

The proposal seeks to replace costly sovereign liabilities with cheaper financing through a new facility funded by IMF assets pending shareholder approval.

People walk in front a G20 banner, as the country prepares to host the G20 Summit on November 22-23, in Johannesburg, South Africa, November 18, 2025. REUTERS/Siphiwe Sibeko
The IMF holds tens of millions of ounces of gold

Overview

  • An expert panel released a report in Johannesburg calling for the G20, IMF and World Bank to launch a refinancing scheme for low‑income and vulnerable countries.
  • The plan prioritizes refinancing over rescheduling and envisions either a special fund or debt swaps to buy back countries’ most expensive obligations.
  • Potential funding sources include IMF special drawing rights and limited sales of IMF gold, which would require backing from IMF shareholders.
  • President Cyril Ramaphosa welcomed the recommendations and the use of IMF gold, while the report also urges a borrowers' club and reviews of IMF/World Bank lending frameworks and credit rating practices.
  • The push comes ahead of the South Africa‑hosted G20 summit after years of slow progress under the Common Framework and renewed debt strains in countries such as Senegal and Mozambique.