Finance ministers and central bank governors of G20 issued at the end of their second virtual meeting held yesterday, a final statement. It reads:
Our urgent collective priority is to overcome the COVID-19 pandemic and its intertwined health, social and economic impacts. We are determined to spare no effort, both individually and collectively, to protect lives, bring the pandemic under control, safeguard people's jobs and incomes, support the global economy during and after this phase and ensure the resilience of the financial system.
We have taken immediate and exceptional measures, domestically and internationally, to address the COVID-19 pandemic and its impacts, including by implementing unprecedented fiscal, monetary and financial stability actions and ensuring that the International Financial Institutions (IFIs) can provide critical support to developing and low-income countries.
Our efforts must continue and be amplified. We commit to use all available policy tools to support the global economy, boost confidence, maintain financial stability and prevent deep and prolonged economic effects. As mandated by the extraordinary G20 Leaders' Summit, we endorse the G20 Action Plan in response to the COVID-19 pandemic, which sets out the key principles guiding our response, and our commitments to specific actions to drive forward international economic cooperation as we navigate this crisis and look ahead to a robust, sustained and inclusive global economic recovery.
We welcome the important steps already taken by the International Monetary Fund (IMF), the World Bank Group (WBG) and other IFIs to help countries in need, using all instruments to the fullest extent possible as part of a coordinated global response. We support the further adoption and swift implementation of a strong financial response to help countries in need and to uphold global financial stability and resilience. As outlined in our Action Plan, this financial response includes: delivering a comprehensive IMF support package; implementing urgently the support proposed by the WBG and multilateral development banks amounting to more than USD 200 billion; addressing debt vulnerabilities in low-income countries due to the pandemic; and enhancing coordination among international organizations to maximize their impact and optimize the use of resources.
We support a time-bound suspension of debt service payments for the poorest countries that request forbearance. We agreed on a coordinated approach with a common term sheet providing the key features for this debt service suspension initiative, which is also agreed by the Paris Club. All bilateral official creditors will participate in this initiative, consistent with their national laws and internal procedures. We call on private creditors, working through the Institute of International Finance, to participate in the initiative on comparable terms. We ask multilateral development banks to further explore the options for the suspension of debt service payments over the suspension period, while maintaining their current rating and low cost of funding. We call on creditors to continue to closely coordinate in the implementation phase of this initiative.
We welcome the IMF's rapid and enhanced deployment of access to emergency financing, including a temporary doubling of the annual access limit under the Rapid Credit Facility (RCF) and the Rapid Financing Instrument (RFI). We support the IMF's adoption of a new Short-Term Liquidity Line, including a review in 2022, for members with very strong fundamentals and policies. We also call on the IMF to explore additional tools that could serve its members' needs as the crisis evolves, drawing on relevant experiences from previous crises. We welcome the immediate financial contributions pledged to strengthen the IMF crisis response capacity and call for more and urgent contributions to address critical funding needs. We reiterate our commitment to ensure a stronger global financial safety net with a strong, quota-based, and adequately resourced IMF at its center, and will keep demands on the IMF resources under close review.
We have taken immediate and exceptional measures to support global financial stability and resilience, including the deployment and expansion of bilateral swap lines and the introduction of repo facilities by central banks in line with their mandates. We also have taken regulatory and supervisory measures to ensure that the financial system continues to support the economy. We remain vigilant and ready to take additional measures as needed. We ask the Financial Stability Board's (FSB) to continue monitoring financial sector vulnerabilities and coordinating on regulatory and supervisory measures between its member countries, international organizations and standard-setting bodies, using the existing flexibility within international regulatory standards without compromising on the previously agreed reforms, and draw from members' experiences to share best practices on policy measures taken. In this respect, we support the principles set out in the FSB's COVID-19 report to the G20.
The Action Plan endorsed by us will be reviewed regularly as the impact of the COVID-19 pandemic unfolds. We will track the implementation and report on this plan, and any further updates to it, at the G20 Finance Ministers and Central Bank Governors Meeting in July 2020 and for the G20 Leaders' Summit in November 2020. We stand ready to act promptly and take any further action that may be required. We reiterate our commitment to use all available policy tools to safeguard against downside risks, ensure a swift recovery and achieve strong, sustainable, balanced and inclusive growth, while continuing to tackle the global challenges, notably those related to addressing the tax challenges arising from the digitalization of the economy and enhancing access to opportunities.
