In the face of a flurry of downside momentum alongside likely contractions among a raft of emerging and poor economies across the globe, the Group of G-20 nations had reached an accord on Wednesday to stretch out a momentary termination of debt repayments for the poorest nations by an additional six months aimed at supporting their ailing economies which appeared to have remained highly susceptible to a fiscal collapse amid a steep downturn in GDPs (Gross Domestic Product) due to the pandemic driven forced business closures.
Besides, the G-20 nations said in a tweet earlier in the day that the debt relief program would provide the poorest economies with an additional six months to pay off a stark sum of $14 billion that had been scheduled to be expired by the year-end and Wednesday’s decision would ease off monetary pressures on developing and emerging nations until June-2021, while the countries would be able to focus more on health care and fiscal stimulus instead debt repayments.
G-20 extends $14 billion debt repayment deadline until June-2021
In point of fact, Wednesday’s G-20 decision to expand the debt repayment deadline by an additional six months came forth following a virtual meet of the G-20 nations’ Finance Ministers and Central Bank Governors, while the decision had been revealed earlier in Twitter and was confirmed in a press conference later in the day.
The virtual discussions have taken place over this week’s meet of the Washington-based trade body International Monetary Fund alongside its sister organization, the World Bank which primarily engage on offering grants and debts to developing and emerging countries while fostering an economic cooperation among their 189 member countries.
Meanwhile, as the Wednesday’s G-20 decision to extend a debt repayment deadline for the poor and emerging economies until June-2021 came against the backdrop of a gauge of International aid groups’ disappointments over lack of efforts on debt reliefs amid a pandemic-led pandemonium in the global economy, an executive director for global policy at an activist international aid group, ONE, David McNair said followed by the G-20 announcement, “This pandemic has laid bare a glaring and unjust double standard: The world’s wealthiest countries play by one set of rules, and the world’s poorest by another”.