The Group of 20 nations, representing the world’s biggest economies, agreed Wednesday to extend the suspension of debt payments by an additional six months to support the most vulnerable countries in their fight against the coronavirus pandemic.
Last Wednesday’s G-20 announcement provides a postponement of sorts for the repayment of debts totaling US$14 billion that were due in December but which have now been extended to June 2021. The pushing back of the repayment deadline did little to conceal the concern of some countries and international organizations that much more had to be done if deeper crises in the affected countries were to be avoided. Oxfam International has reportedly made public its view that the debt repayment postponement measure is decidedly inadequate in the circumstances while Pakistan is reportedly advocating a complete cancellation of the debts. Others feel that while the measure may not count for much in the longer term, it at least affords the debtor nations a breathing space to focus their spending during the period immediately ahead on healthcare for their COVID-19 menaced populations and on emergency stimulus programmes designed to help keep their economies afloat.