G20 announces one year's debt relief for poor countries as the world battles coronavirus, recession

G20 announces one year's debt relief for poor countries as the world battles coronavirus, recession

Riyadh: The group of 20 countries on Wednesday announced a year's worth of debt relief to the world's poorest nations as the global economy is inundated by the worst recession in a century.

The G20, which combines the world's largest economies, also reiterated its commitment to deploy "all available policy tools" to tackle the health and economic crisis caused by COVID-19.

With more than two million cases and deaths worldwide approaching 130,000, many less developed countries face the highest burden because they do not have the energy to spend to cure the disease. And the economic breakdown caused by the massive lockdown of their economies is due to the virus.

The G20 finance ministers and central bankers "endorsed the suspension of payment of debt services for the poorest countries," and spoke after their virtual meeting, saying "all bilateral official creditors will participate in the initiative."

Saudi Finance Minister Mohammad al-Jadadan, who is currently the head of the group, said it means "poor countries do not have to worry about paying over the next 12 months."

The initiative, he said at a press briefing, would "provide north of $20 billion of immediate liquidity" for poor countries to use "for their health system and support their people facing COVID-19."

The G20 officials "put our money where our mouth is," he said, "and pledged to help the world with this epidemic."

The International Monetary Fund and the World Bank called on governments to provide det relief to the most needy countries, and the finance ministers of the group of seven advanced economies agreed to do so on Tuesday.

The IMF and the World Bank leaders welcomed the announcement, calling it "a powerful, fast-moving initiative that will do much to protect the lives and livelihoods of millions of the most vulnerable people."

The Washington-based lenders have arrived to provide emergency financing and have received requests for assistance from 100 countries.