The finance ministers of the wealthy G7 countries have said that a debt relief initiative for the world's poorest countries could be extended beyond the end of the year to deal with the aftermath of the coronavirus pandemic.
Their joint statement came amid warnings that low-income and emerging economies need more than the International Monetary Fund's original estimate of $ 2.5 trillion to cope with the crisis.
The Group of Seven (G7) includes Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
"We continue to work together to advance the international economic response to the COVID-19 pandemic, focusing on the poorest and most vulnerable countries," said ministers of the world's most advanced economies.
"COVID-19 has exacerbated existing debt vulnerabilities in many low-income countries and highlighted the importance of debt sustainability and transparency for long-term financing of development," they said.
These nations welcomed the efforts of the international financial institutions (IFIs) to increase their support for the most vulnerable countries.
"In this regard, we are committed to implementing the G20 and Paris Club debt suspension initiative (DSSI) by suspending official bilateral debt payments for the poorest countries until the end of 2020 and possibly longer to add tax liability to those countries provide space for funding social, health and other measures to respond to the pandemic, "they said.
"In line with the G20 and Paris Club DSSI agreements, we will implement the DSSI in our export credit agencies and other public credit agencies, and will urge all official creditors to do so," they said.
The G7 finance ministers said they strongly support the DSSI recipient countries' commitment to strengthen debt reporting, which will facilitate more informed investment decisions, improve public accountability and support long-term sustainable development.
"We are pleased that the International Monetary Fund (IMF) and the World Bank Group will monitor creditor participation, public debt disclosure and the use of additional tax space, and we look forward to public reporting on these results.
"Beyond the DSSI, IFIs play an important role in helping borrowing countries improve practices to promote debt transparency and sustainability, as outlined by the IMF and the World Bank's multi-faceted approach to addressing emerging debt vulnerabilities," said they
They urged IFIs, borrowers, and creditors to work together to strengthen public reporting of debt data used in debt sustainability analysis, including an outbreak by the external creditor and more thorough coverage of contingent liabilities, government debt, and secured debt Financing.
"The IFIs can promote and support the efforts of borrower countries to improve public debt reporting, limit non-concessional loans when necessary, and reduce vulnerability to debt," they said.
"We remain committed to helping low-income countries respond to the COVID 19 pandemic. We will continue to work with the G20, Paris Club partners, the IMF, the World Bank and other creditors to ensure the sustainability and transparency of the To ensure debt. " including promoting timely coordination of creditors and fair burden sharing, "they said.
According to the Center for System Science and Engineering at Johns Hopkins University, the number of confirmed coronavirus cases worldwide has risen to 6,429,453, while the number of deaths on Thursday morning reached 385,873.
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