Global creditors agree on debt relief for poor countries hit by pandemic
Major international creditors will be relieving the world’s poorest savings-paying countries this year to help them deal with the coronavirus pandemic that has caused the sharpest decline in the gloFinance officials from the U.S., China and other group of 20 major economies are expected to finalize the agreement when they meet online on Wednesday, media inform French Finance Minister He said some 76 countries, including 40 in sub-Saharan Africa, would be eligible to have debt payments worth a combined $20 billion suspended by both official and private creditors, with a remaining $12 billion in payments due to multilateral institutions still to be sorted out Le Maire.
bal economy sin We have obtained a debt moratorium for a total of $20 billion, at the level of bilateral creditors and private creditors, “Le marie told He spoke just before the Finance Ministers and Central Bank Governors of the Group of Seven (G7) met Tuesday by video conference and threw their support behind limited debt relief to the poorest countries, as long as
it was supported by the G20 and the Paris Club. the 1930s, France announced In a joint statement, they announced that they were prepared to provide ‘a time-limited suspension of debt service payments due on official bilateral claims for all countries eligible for concessional financing by the World Bank’ if China and other countries joined the Group of 20 major economies and, as agreed with the Paris
Sources familiar with the process had told Reuters this week that they expected the G20 to endorse a suspension of debt payments at least by the end of the year, despite some resistance from China, which has outpaced the World Bank as a major lender to developing countries, IMF chief economist Gita Gopinath told Reuters the agreement provided “huge welcome” relief to the poorest countries, freeing funds that could be used to improve healthcare systems at a time when finances have been strained by plunging price of oil and massive outflows of capital. Africa. b creditors group.
World Bank President David Malpass, in a tweet, thanked US Treasury Secretary Steven Mnuchin for organizing the G7 meeting and welcoming his joint call with International Monetary Fund Managing Director Kristalina Georgieva for World Bank and IMF have continued disbursing emergency assistance to countries that are struggling to control the coronavirus and reduce its economic effects.
They first provided their debt relief appeal on March 25 but the G20 nations did not officially accept it. a temporary debt standstill.
The World Bank and IMF have continued disbursing emergency assistance to countries that are struggling to control the coronavirus and reduce its economic effects. They first provided their debt relief appeal on March 25 but the IMF said the pandemic would cause a 3 percentage contraction in the global economy in its 2020 World Economic Outlook, but informed the impact could be so much worse.