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G20 Holds Extraordinary Debt Reduction Meeting

category international | politics / elections | press release author Thursday November 12, 2020 20:57author by Zach Conti - Jubilee USA Report this post to the editors

On Friday, the G20 convenes an extraordinary meeting on debt reduction for developing countries affected by the COVID-19 economic crisis.

On Friday, the G20 convenes an extraordinary meeting on debt reduction for developing countries affected by the COVID-19 economic crisis.

“The G20 recognizes that many vulnerable countries won't move beyond this crisis without significant debt relief,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. “While a new debt relief process is positive, we remain concerned that a number of developing countries who need relief, are not able to qualify for this process.”

In October the G20 agreed, in principle, to create a “Common Framework for Debt Treatment beyond Debt Service Suspension Initiative." The initial G20 debt suspension initiative allows the 73 poorest countries to stop paying debts through mid-2021. 46 countries freed up $5 billion because of the program passed by the G20 in April.

Ahead of Friday's G20 finance minister meeting, on November 12th, chiefs of 450 public banks, heads of state and other world leaders met on their collective response to the coronavirus crisis and recovery. The “Finance in Common” Summit is backed by Emmanuel Macron, President of France and the Secretary General of the United Nations, Antonio Guterrez.

The gathering offered a platform for the banks, with combined assets of $11 trillion, to explore cooperation and common approaches on development, climate issues and coronavirus response.

"A central recommendation the summit encouraged is that development banks need to increase their support of countries to confront the coronavirus crisis," said LeCompte. "For development banks to expand their role in the scale required, publicly-funded banks will need more resources, innovative tools and greater coordination."

The Presidents and Prime Ministers of the G20 meet for their summit on November 21st through 22nd. On December 1st, Italy takes over the G20 Presidency.

Jubilee USA Network is an alliance of more than 75 US organizations and 750 faith communities working with 50 Jubilee global partners. Jubilee USA builds an economy that serves, protects and promotes the participation of the most vulnerable. Jubilee USA wins critical global financial reforms and won more than $130 billion in debt relief to benefit the world's poorest people. www.jubileeusa.org

Related Link: https://www.jubileeusa.org/pr_g20_dev_banks_meet
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