Saudi Arabia says G20 to consider extending debt suspension initiative

G20 finance officials called on IMF to explore additional financing tools to serve the needs of the members

  
Saudi Minister of Finance Mohammed al-Jadaan wears a protective mask as he attends a virtual meeting of G20 finance ministers and central bank governors in Riyadh, Saudi Arabia July 18, 2020. G20 Saudi Arabia/Handout via REUTERS

Saudi Minister of Finance Mohammed al-Jadaan wears a protective mask as he attends a virtual meeting of G20 finance ministers and central bank governors in Riyadh, Saudi Arabia July 18, 2020. G20 Saudi Arabia/Handout via REUTERS

RIYADH —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.

Al-Jadaan also 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.

The G20 Action Plan sets out key principles guiding the G20 response and its commitments to specific actions to drive forward international economic cooperation as the world navigates this crisis and looks ahead to a robust, sustained and inclusive economic recovery.

In this regard, 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.

 

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