France President Emmanuel Macron bows to Ruto’s demands to restructure international loans and aid advanced to developing countries.
The France President was among the first leaders to heed President William Ruto’s plea to restructure financial architecture to alleviate poverty and revive the economy.
The French President announced significant steps to overcome the financial fragmentation that most African and developing nations experience on Friday, June 23.
Hours after visiting Ruto in Paris, Macron reaffirmed in a statement that his administration will support equitable resource distribution.
“To prevent fragmentation, we will transform the governance of the international financial architecture to make it more efficient, more equitable, and fit for the world of today,” Macron announced.
“We need a fiscal stimulus with more resources to support vulnerable economies lifting their population out of poverty while protecting the planet,” he added.
France also pledged to increase funding to help countries tackle global challenges, including climate change.
“We need to accelerate debt suspension and treatments when needed, including increasing the fiscal space of countries in debt distress. We will deliver on the common framework as we did for Chad and Zambia. We also need to support each other when one is hit by a disaster. That calls for specific tools including climate-resilient debt clause,” Macron’s statement read in part.
“We will promote fair partnerships, in order to develop added value by transforming raw material and critical minerals locally, and reinforce our commitment to deploy healthcare and food infrastructures to increase sovereignty,” the French President added.
President William Ruto had implored other leaders to lobby for restructuring financial systems. Ruto explained that the resources should neither be controlled by the World Bank nor the International Monetary Fund (IMF).
“Africa does not want anything for free. But we need a new financial model where power is not in the hands of the few,” Ruto boldly underlined.
He also called for the extension of debt repayment regimes. Ruto proposed that maturing debts should be granted a 50-year maturing limit with a grace period between 10 to 20 years.
While responding to Ruto at the summit, President Macron concurred and underscored that a bold and targeted approach can transform the world.
“We need a diverse but inclusive discussion on climate change to fix the game. No one should be left behind; not even China,” explained Macron.