By Brightwell Chabusha
The G20 has said many vulnerable countries won’t move beyond the COVID-19 economic crisis without significant debt relief.
And Executive Director of the religious development group Jubilee USA Network Eric LeCompte is concerned that a number of developing countries who need relief are not able to qualify for the process.
Mr. LeCompte said this during the Extraordinary Debt Reduction Meeting Ahead of G20 Meeting on Coronavirus Response that.
“The G20 recognizes that many vulnerable countries won’t move beyond this crisis without significant debt relief. While a new debt relief process is positive, we remain concerned that a number of developing countries who need relief, are not able to qualify for this process,” he said.
Mr. LeCompte disclosed that a central recommendation the summit encouraged was that development banks need to increase their support of countries to confront the coronavirus crisis.
He added development banks will need more resources, innovative tools and greater coordination to expand their role in the scale required.
In October, the G20 agreed, in principle, to create a “common framework for debt treatment beyond debt service suspension initiative.”
The initial G20 debt suspension initiative allows the 73 poorest countries to stop paying debts through mid-2021. Forty-six countries freed up $5 billion because of the program passed by the G20 in April.
Ahead of Friday’s G20 finance minister meeting, on November 12th, chiefs of 450 public banks, heads of state and other world leaders met on their collective response to the coronavirus crisis and recovery. The “Finance in Common” Summit is backed by Emmanuel Macron, President of France and the Secretary General of the United Nations, Antonio Guterrez.
The gathering offered a platform for the banks, with combined assets of $11 trillion, to explore cooperation and common approaches on development, climate issues and coronavirus response.
The Presidents and Prime Ministers of the G20 meet for their summit on November 21st through 22nd. On December 1st, Italy takes over the G20 Presidency.
Jubilee USA Network is an alliance of more than 75 US organizations and 750 faith communities working with 50 Jubilee global partners. Jubilee USA builds an economy that serves, protects and promotes the participation of the most vulnerable. Jubilee USA wins critical global financial reforms and won more than $130 billion in debt relief to benefit the world’s poorest people.