G20 to Agree on Additional Measures to Support Global Economy

Saudi Minister of Finance Mohammed Al-Jadaan speaks during a meeting of Finance ministers and central bank governors of the G20 nations in the Saudi capital Riyadh on February 23, 2020. AFP

G20 ministers of Finance and central banks governors revealed an agreement to adopt three tracks; to reduce the repercussions of the coronavirus on global economy.

The announcement came during a video conference on the preparations for the virtual G20 summit, scheduled for this week.

Hosted by Saudi Arabia, the video conference gathered G20 finance ministers and central bank governors on Monday. It was to discuss the effects of the Covid-19 pandemic on the global economy and ways to tackle it.

In remarks, Saudi Finance Minister Mohammed Al-Jadaan underlined the need to increase G20 efforts. This is to provide support to people and businesses, and protect the stability of the global economy and financial markets.

The outlook for global growth deteriorated “sharply since we met at the last G20 meeting of finance ministers and central bank governors in February. The recent events of the pandemic have had an impact on the global economy,” he noted.

During the meeting, ministers and governors agreed to follow closely on the developments of the coronavirus. This includes its implications for the conditions of financial markets and economies.

They also agreed to adopt additional measures to support the economy during the current crisis and for the next period. In addition to developing a joint action plan to respond to the pandemic repercussions.

The meeting discussed methods that can be adopted to intensify efforts of bilateral and multilateral lenders to address the risks of debt sustainability, especially in low-income countries.

Discussions included the role of the IMF, through its close work with the World Bank and other international financial institutions, in exploiting all available resources and searching for additional mandatory measures to support financial stability and liquidity in emerging markets and economies of developing countries.