G20 finance ministers have suspended debt servicing for poor countries until 2021, giving them a big relief.
G20 finance ministers and central bank governors have agreed to suspend debt service payments to poor countries until 2021.
According to the Saudi media, the meeting has extended the previous decision to suspend the payment, this emergency meeting was held online under the presidency of Saudi Arabia, at the end of which a joint declaration has been issued.
The statement said that further steps would be required to resolve the debt issue, requiring a special deal with each country regarding the suspension of debt service payments.
It was said in the meeting that the size of the Corona crisis is extraordinary and many problems are arising from debt, the future of many low-income countries is getting dark here. The G20 Finance Ministers gave assurances that the debt service moratorium program is being implemented and will continue to be implemented.
The meeting asked the lending countries to demonstrate full transparency, and said that action on loan servicing would take place at the request of the borrowing country. According to the declaration, the lending institutions will set the basic rules in relation to the said relief, a clear system for distributing the debt burden will also be formulated.
It may be noted that the Debt Service Suspension Initiative (DSSI) was announced in April during the early days of the pandemic in Europe.
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