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Industrial nations consider extending debt relief over virus

The world’s major economies are considering a proposal to extend for six months a moratorium on debt payments by poor nations as a way to provide support during the worst global recession since the 1930s

Via AP news wire
Wednesday 14 October 2020 12:04 EDT
Global Economy
Global Economy (Copyright 2019 The Associated Press. All rights reserved)

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The world's major economies are considering a proposal to extend for six months a moratorium on debt payments by poor nations as a way to provide support during the worst global recession since the 1930s.

The issue is being discussed at a virtual meeting Wednesday of the Group of 20 major industrial countries, which includes traditional economic powers such as the United States, Japan and Germany and emerging economies such as China.

The virtual discussions are being held at the start of this week's meetings of the 189-nation International Monetary Fund and the World Bank, which are also being conducted virtually because of the coronavirus pandemic.

Mohammed al-Jaardan, the finance minister for Saudi Arabia, this year's chair of the G-20, said the suspension of debt payments, due to expire by year's end, should be extended into 2021.

World Bank President David Malpass has told reporters that he expects the extension will be for six months.

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