Beautiful Virgin Islands

Sunday, Jul 20, 2025

G20 suspends debt repayments for poorest nations fighting Covid-19

G20 suspends debt repayments for poorest nations fighting Covid-19

The world’s richest countries have agreed to freeze poor nations’ debt obligations, shortly after nearly 20 European and African leaders made a joint appeal for a massive international effort to boost Africa’s coronavirus response. “Only a global victory that fully includes Africa can bring this pandemic to an end," they said.
Finance ministers of the G20 group of major economies, which includes the US, China, India and others, said they will immediately put on hold poorer countries’ obligations to service debt they owe.

The statement issued after a videoconference on Wednesday put to rest concerns that China would block such a measure, which is aimed at helping the poorest nations focus their spending on healthcare and assistance to vulnerable people to contain the outbreak and its fallout.

The joint appeal signed by the leaders of France, Ethiopia, Germany, South Africa and other nations, published in the Financial Times, called for dramatic measures that include an immediate moratorium on all debt payments, public and private, until the pandemic is over.

While the G20 did not specify how many countries would benefit, French Finance Minister Bruno Le Maire said 76 countries were eligible for the moratorium, including about 40 in sub-Saharan Africa.

Debt payments worth $20 billion will be suspended including $8 billion owed to private creditors and $12 billion owed to other countries, he said.

An additional $12 billion in debt payments to multilateral institutions like the World Bank are also under consideration for a debt freeze. The freeze on debt repayments will last through the end of this year and could be extended.

African officials have joined forces in recent days to appeal for billions of dollars in financial assistance and improve their position in the global competition with richer countries for badly needed medical equipment. The African Union appointed four special envoys to mobilise support and created a platform to help the continent’s 54 countries bulk-buy medical goods at more accessible prices.

While virus cases among Africa’s 1.3 billion people total more than 16,000, health experts have said the continent is weeks behind the US and Europe in the pandemic and the rise in cases looks alarmingly similar to Europe’s.

As the world braces for potential waves of the virus, the joint appeal said no region will be safe if Africa, with largely weak health systems, is left to fend for itself.

According to the statement an “unprecedented effort” is required, the appeal said, directly addressing the World Bank and IMF. “We must deploy a huge economic stimulus package of at least $100 billion” to give to Africa the resources it needs to fight the virus.

On Monday, the IMF approved $500 million to cancel six months of debt payments for 25 of the world’s most impoverished countries, including 19 African member states, so they can help tackle the pandemic.

On Wednesday, the IMF said sub-Saharan Africa could see minus-1.6 percent growth this year, “the lowest level on record”.

Calls for assistance have been growing at the highest levels. In his Easter message, Pope Francis called for debt forgiveness for the world’s poorest countries, saying they are being hardest hit by the pandemic and must not be “abandoned.”

Africa’s debt-to-GDP ratio has climbed from 30 percent in 2012 to 95 percent today, said French President Emmanuel Macron in an interview posted Wednesday with Radio France Internationale.

“We absolutely must help Africa to strengthen its capacities to respond to the health shock, and we must help it to respond economically to this crisis,” said Macron.

The new appeal, signed by all European leaders of the G20, has also welcomed a European Union plan for a pledging conference in May.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
×