The G20 is committed to supporting global economic and financial stability

The Finance Ministers of the world’s leading emerging and developed economies agreed to a six-month extension of the Initiative to delay the debt payment for poor countries.

Photo is for illustration only. (Source: Qartz)

On October 14, the finance ministers of the world’s leading developed and emerging economies (G20) countries agreed to an additional six-month extension of the Delayed Initiative. pay (DSSI) for the poorest countries this year and will revisit this issue in April 2021.

In a joint statement issued following an online conference of finance ministers and central bank governors, G20 finance officials highlighted the need to control the spread of the inflammatory epidemic. Acute respiratory tract COVID-19, and commit to “do everything” to support the financial stability and global economy. Officials also said they will continue to address the disproportionate impact the COVID-19 crisis has on women, young people and vulnerable groups around the world.

The statement also underlines the G20 action plan highlighting the need to take collective action to accelerate diagnosis, treatment, development and preparation of the COVID-19 vaccine, including the adoption of The global COVID-19 Vaccine Access Facilitation (COVAX) initiative is promoted by the World Health Organization (WHO).

According to the joint statement, G20 financial officials agreed to extend the DSSI for another six months, and expressed disappointment at the lack of private creditors to participate in the initiative. They pledged to continue to assist developing countries in strengthening their tax capacity to build sustainable tax collection systems. Ministers also agreed to hold an extraordinary meeting ahead of the upcoming G20 summit in November to discuss the outstanding issues.

The fact that a series of businesses had to stop operations and the countries closed their borders to prevent the COVID-19 from spreading in March, has devastated economies around the world. In mid-April, the G20 and the Paris Club agreed on DSSI for the poorest countries in 2020.

However, World Bank President David Malpass said the debt reduction for these poor countries still meager because “not all creditors are fully involved”, with only 43 countries out of 73 benefiting about $ 5 billion from the DSSI initiative to support social security. , health and economics to respond to the pandemic, while the expected level is between 8 billion and 11 billion USD.

After the global financial crisis of 2008-2009, the G20 played a very important role in the efforts to recover the economy and mitigate the most negative impacts of this crisis. More than 10 years later, the world faced another major crisis, this time not only economic, financial, but also directly threatening the lives of millions of people.

In that context, the G20 has become the focus of attention when it is expected to once again play a leading role, helping to coordinate, promote and consolidate international cooperation in order to bring the world through the “storm surge. “Bearing the current name COVID-19./.

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