WASHINGTON: (HRNW) G20 countries have agreed for the first time on a common framework for restructuring government debt, in anticipation of the coronavirus crisis leaving some poorer nations struggling to pay and in need of relief.
With the COVID-19 pandemic straining the finances of some developing countries, G20 finance ministers said on Friday that more help was needed than a current temporary debt freeze, which will be extended until June 30, 2021.
Major creditors, including China, will be expected to follow the joint guidelines agreed by the G20, which lays out how debt deemed to be unsustainable can be reduced or rescheduled.
Non-governmental groups said the accord should have gone further by including middle-income countries and forcing private investors to accept cancellations.
The coronavirus crisis has exacerbated problems for the poorest countries, 50% of which are now in or at risk of debt distress and in an early sign of its impact, Zambia is on the brink of becoming Africa’s first COVID-era sovereign default.
Be the first to comment on "G20 strikes historic debt pact to help poorer states hit by COVID"