G20 to consider extending debt suspension initiative

Finance Minister Mohammed Al-Jadaan said on Saturday the Group of 20 advanced economies would consider extending a debt suspension initiative beyond this year.

Al-Jadaan made this statement after the G20 Finance Ministers and Central Bank Governors met virtually on Saturday to discuss global economic outlook and coordinate collective action for a robust and sustained global economic recovery.

The FMCBG meeting was held under the Saudi G20 Presidency and was chaired by Finance Minister Al-Jadaan and Saudi Arabian Monetary Authority (SAMA) Governor Dr. Ahmed Al-Kholifey.

The G20’s decision to extend a debt suspension initiative beyond this year came after World Bank President David Malpass urged G20 economies to extend a freeze in official debt payments by the poorest countries through the end of 2021.

Also Al-Jadaan; told a news conference here that; as of July 18, 42 countries had applied for the initiative. Al-Jadaan added that $21 billion has been approved to cover the healthcare gap globally.

The G20 also called for multilateral development banks to “go further” in supporting debt freeze; by providing eligible countries with net positive financial flows.

Above all the G20 Action Plan sets out key principles guiding the G20 response and its commitments; to specific actions to drive forward international economic cooperation during the world navigation of this crisis and looks ahead to a robust; sustained and inclusive economic recovery.

To sum up, the G20 finance officials called on the International Monetary Fund (IMF); to explore additional financing tools to serve the needs of the members.

The G20 also reaffirmed its commitment on reaching a global consensus-based solution on digital tax issues this year; while also stating the COVID-19 pandemic has impacted the work of addressing tax challenges; and we stress the importance of G20; OECD frameworks to address this issue.