G20 announces one year debt relief for the poorest countries

G20 announces one year debt relief for the poorest countries due to Coronavirus pandemic negative impacts.

The Group of 20 nations have announced a one-year debt relief for the world’s poorest nations.

Poor countries are struggling to financially cope with coronavirus pandemic.

G20 announces one year debt relief

Finance Ministers and governors of central banks of G-20 made this announced in a communique following their virtual meeting.

They said they support a time-bound suspension of the debt service payments for the poorest countries that request forbearance.

Group-20 announced support for a temporary halt to debt payments by the world’s poorest nations amid Coronavirus pandemic.

It also called on private creditors, working under the Institute of International Finance, to participate in the initiative that extends to world’s 76 poorest countries.

Earlier, World Bank Managing Director Axel van Trotsenburg had disclosed that G20 and G7 countries support temporary halt in debt payments for poorest countries.

He said this in an interview with a British news agency. Further, he said these countries had expressed their support to World Bank and IMF call for a temporary halt in debt payments for poorest countries.

Meanwhile, World Bank President David Malpass also had anticipated it.

He expected a broad endorsement of the proposal by the 25-member joint Development Committee of the World Bank and IMF.