Addis Ababa, September 25, 2020 (FBC) – G7 finance ministers are expected on Friday to signal their support for extending a debt relief programme aimed at helping the poorest countries weather the coronavirus pandemic, three sources briefed on the issue said.
The ministers of the Group of Seven advanced economies are set to meet by video conference on Friday to discuss global economic developments and the continued effect of coronavirus, which has infected nearly 32 million people worldwide.
Although the International Monetary Fund (IMF) has argued in favour of extending the debt relief programme’s year-end deadline by a year through to 2021, the G7 ministers are likely to back an initial extension of six months, the sources said.
The G7 finance ministers’ backing for an extension of the debt moratorium through June 2021 would help smooth the way for a decision by the larger G20 grouping.
The Group of 20 finance ministers are set to meet on October 14, though the decision would likely be formally adopted by G20 leaders at their summit in November.
The G7 will debate the longer-term debt sustainability of the poorest countries that have been crippled by high debt levels even before the pandemic hit, the sources said.
The discussions reflect a growing realisation among the global community that some of them may need to have their debt restructured, they said.
Source: Aljazeera