Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

G20 suspends debt repayments for poorest nations fighting Covid-19

G20 suspends debt repayments for poorest nations fighting Covid-19

The world’s richest countries have agreed to freeze poor nations’ debt obligations, shortly after nearly 20 European and African leaders made a joint appeal for a massive international effort to boost Africa’s coronavirus response. “Only a global victory that fully includes Africa can bring this pandemic to an end," they said.
Finance ministers of the G20 group of major economies, which includes the US, China, India and others, said they will immediately put on hold poorer countries’ obligations to service debt they owe.

The statement issued after a videoconference on Wednesday put to rest concerns that China would block such a measure, which is aimed at helping the poorest nations focus their spending on healthcare and assistance to vulnerable people to contain the outbreak and its fallout.

The joint appeal signed by the leaders of France, Ethiopia, Germany, South Africa and other nations, published in the Financial Times, called for dramatic measures that include an immediate moratorium on all debt payments, public and private, until the pandemic is over.

While the G20 did not specify how many countries would benefit, French Finance Minister Bruno Le Maire said 76 countries were eligible for the moratorium, including about 40 in sub-Saharan Africa.

Debt payments worth $20 billion will be suspended including $8 billion owed to private creditors and $12 billion owed to other countries, he said.

An additional $12 billion in debt payments to multilateral institutions like the World Bank are also under consideration for a debt freeze. The freeze on debt repayments will last through the end of this year and could be extended.

African officials have joined forces in recent days to appeal for billions of dollars in financial assistance and improve their position in the global competition with richer countries for badly needed medical equipment. The African Union appointed four special envoys to mobilise support and created a platform to help the continent’s 54 countries bulk-buy medical goods at more accessible prices.

While virus cases among Africa’s 1.3 billion people total more than 16,000, health experts have said the continent is weeks behind the US and Europe in the pandemic and the rise in cases looks alarmingly similar to Europe’s.

As the world braces for potential waves of the virus, the joint appeal said no region will be safe if Africa, with largely weak health systems, is left to fend for itself.

According to the statement an “unprecedented effort” is required, the appeal said, directly addressing the World Bank and IMF. “We must deploy a huge economic stimulus package of at least $100 billion” to give to Africa the resources it needs to fight the virus.

On Monday, the IMF approved $500 million to cancel six months of debt payments for 25 of the world’s most impoverished countries, including 19 African member states, so they can help tackle the pandemic.

On Wednesday, the IMF said sub-Saharan Africa could see minus-1.6 percent growth this year, “the lowest level on record”.

Calls for assistance have been growing at the highest levels. In his Easter message, Pope Francis called for debt forgiveness for the world’s poorest countries, saying they are being hardest hit by the pandemic and must not be “abandoned.”

Africa’s debt-to-GDP ratio has climbed from 30 percent in 2012 to 95 percent today, said French President Emmanuel Macron in an interview posted Wednesday with Radio France Internationale.

“We absolutely must help Africa to strengthen its capacities to respond to the health shock, and we must help it to respond economically to this crisis,” said Macron.

The new appeal, signed by all European leaders of the G20, has also welcomed a European Union plan for a pledging conference in May.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
×