Calls for debt relief for world’s poorest countries
Published : Tuesday, 7 April, 2020 at 4:54 PM Count : 241
More than 100 global organizations have called for debt payments of developing countries to be dropped this year.
These countries include the world's poorest economies that are battling coronavirus effects.
They have written to world leaders and major central banks calling for a range of debt relief measures.
The call is being spearheaded by UK-based charity Jubilee Debt Campaign and comes a day before a meeting of the G20 group of the world's largest and fastest-growing economies.
"Developing countries are experiencing unprecedented economic shocks and at the same time facing emergency health emergencies," says Sara-Jayne Clifton, director of the Jubilee Debt Campaign. "
"The IMF and the World Bank's debt repayment suspension now saves money, but this way it kicks in and actually avoids dealing with the problem with hate."
Promoters want to cancel debt payments with immediate effect, including payment to private or lenders.
"This is the fastest way for countries to respond to Covid-19, and to ensure that the profits of wealthy private practitioners are not wasted on public money on bail."
The nonprofit network Eurodad's calculations show that 69 other governments and non-profit organizations in the poorest countries in the world will give $19.5 billion and $ 6 billion this year to external non-governmental donors.
The International Monetary Fund (IMF) provided $50 billion in emergency financing while the World Bank approved the $14 billion response package to the most vulnerable economy. The IMF wants to target money to help countries respond to the epidemic in countries with poor health systems.
Meanwhile, the World Bank's funding goal supports both the health and financial impact of the virus. These will include low cost loans, grants and technical support.-Internet