G-20 To Extend Debt Service Obligation Of Poor Countries To Mid-2021

World top 20 economies may extend its debt service payment obligation for poorest countries to mid-2021, an action that would save countries from deeper crisis.

G20 disclosed the development in a communique after a two-day summit, hosted by Saudi Arabia.

Responding to the development, the Director-General of the International Monetary Fund, Kristalina Georgieva, said the extension is an indication that the world is not out of the economic crisis

She said, “We must also help those countries not covered by the framework to address debt vulnerabilities so that their economies can become more resilient.”

The debt relief earlier initiated had saved about 46 countries up to $5.7bn. The countries that were eligible for the moratorium were 76, Reuters said.

G-20 also said it will ensure that the Covid-19 tests and vaccines are affordable across countries.

It said, “We will spare no effort to ensure their affordable and equitable access for all people.

“The COVID-19 pandemic and its unprecedented impact in terms of lives lost, livelihoods and economies affected, is an unparalleled shock that has revealed vulnerabilities in our preparedness and response and underscored our common challenges.”

The move is a relief to developing countries including Nigeria who have expressed worry over the affordability and accessibility of the vaccine.