By Elishya Perera
London (CWBN)_The group of nations with the world’s largest economies, known as the G-20, has decided to extend the suspension of debt payments by additional six months, in order to give developing countries an opportunity to focus on healthcare and economic support measures. Accordingly, this decision would provide relief of $14 billion in debt payments, which were due at the end of the year.
Incumbent Chairperson of the forum, Mohammed al-Jadaan, the Finance Minister for Saudi Arabia, said “We still need to do more. We must ensure these nations are fully supported in their efforts to tackle the COVID-19 pandemic”.
Meanwhile, Transparency International, Amnesty International and other non-profit organisations have written to the G-20 finance ministers claiming that the world is facing a financial crisis unlike any in the last century, and pointed out that debt suspension should only be the first step.
Some critics claim that China had objected to this debt relief plan which was announced yesterday. “China has proven a reluctant participant in multilateral debt relief efforts, putting its narrow economic and geopolitical interests ahead of a collective approach to easing the burden on poor countries”, said Eswar Prasad, a former head of the IMF’s China division. In the past weeks, China was increasingly coming under pressure to its debts to poor countries affected by the pandemic, under the Debt Service Suspension Initiative (DSSI) of the G20.
According to CGTN, a state-controlled media organization in China, prior to the debt relief measures being announced by the G-20 yesterday, stated that over a hundred low and middle income countries will still have to pay a total of USD 130 billion in debt service in 2020. China is the biggest bilateral lender for most emerging economies, especially lending for hundreds of projects under its Belt and Road Initiative.
Edited By Chathushka Perera
