This translation has been automatically generated and has not been verified for accuracy.German Finance Minister Olaf Scholz awaits the start of the video conference of the G20 finance ministers and central bank governors in his ministry in Berlin, Germany, April 15, 2020.
The debt standstill offer is open to the world’s poorest and least-developed countries, as defined by the World Bank and the United Nations, as long as they are current in their debt service payments to the World Bank and the IMF. Oxfam International said more work was needed to protect Lebanon, Ecuador and other countries not covered by the deal, and to raise the estimated US$1 trillion needed to help countries weather the “economic tsunami” unleashed by the pandemic.
Georgieva welcomed the G20’s “exceptionally rapid” decision to move ahead on debt relief. In a new IMF document, she said debt relief was in the interest of all, “as the global community is as strong as its weakest member in a global pandemic.”Private creditors will join the debt relief effort on a voluntary basis, said the International Institute of Finance, which represents 450 banks, hedge funds and other global financial firms.
A further US$12 billion is owed to multilateral lenders, mainly the World Bank, French Finance Minister Bruno Le Maire told reporters, although he provided no details.World Bank Group President David Malpass said the Bank, the IMF and other multilateral lenders were exploring options for suspending their debt service payments while maintaining high crediting ratings on their bonds.