Logo of Phnom Penh Post newspaper Phnom Penh Post - G7 backs extension of G20 debt freeze for poorest nations

G7 backs extension of G20 debt freeze for poorest nations

Content image - Phnom Penh Post
The G7 nations support extending the Debt Service Suspension Initiative. AFP

G7 backs extension of G20 debt freeze for poorest nations

G7 finance ministers on Friday reiterated their call for private lenders to participate in a debt suspension programme for the poorest nations that was announced in April as the coronavirus attacked global economies.

“We reiterate our call for private creditors to implement the DSSI on a voluntary basis when requested by eligible borrowers,” the bloc said in a statement released by the US Treasury, referring to the Debt Service Suspension Initiative.

Finance ministers and central bankers from the G20 had earlier in the year endorsed an immediate one-year debt suspension for the poorest countries, which are particularly vulnerable to the economic impacts of the Covid-19 pandemic.

The Friday statement from the seven most-industrialised nations – the UK, Canada, France, Germany, Italy, Japan and the US – supported extending the DSSI initiative.

The ministers said: “Recognising the ongoing financial needs of low-income countries, we support extending the DSSI in the context of a request for IMF financing.”

They added that the extension “should reflect the G20’s commitment to transparency and creditor coordination . . . as well as [reflect] the need for fair burden sharing among all creditors”.

The ministers also said they “strongly regret” moves by some countries to classify State-owned financial institutions as commercial lenders to avoid participating in the initiative.

G20 finance ministers are meeting next month, and the statement also calls on them to agree on terms for further debt relief for poor nations.

MOST VIEWED

  • Angkor provides ‘valuable’ water storage

    The Apsara National Authority (ANA) has stored millions of cubic metres of water at reservoirs in the Angkor area after Cambodia experienced a series of rainstorms over the last few days. The storing of the water, besides serving temple conservation, will also be used to

  • Would you like fries with that? US burger chain makes Phnom Penh debut

    California-based The Habit Burger Grill restaurant chain is all set to serve up a delicious array of charbroiled burgers and sides at its newest international location in the centre of Phnom Penh. The Habit is “renowned for its award-winning Charburgers grilled over an open flame,

  • Floods prompt evacuations in Kampong Speu

    Rain-induced floods and water flowing from Kampong Speu province have submerged the houses of 1,527 families living close to the Prek Thnot River in Spean Thma, Tien, Kong Noy and Roluos communes in Phnom Penh’s Dangkor district, according to data from local authorities. Spean Thma

  • Banteay Meanchey floods kill one more as death toll reaches 15

    As floodwaters start to recede in Pursat, Battambang and Pailin provinces and Phnom Penh, Banteay Meanchey continues to bear the brunt as one more person was killed on Monday, bringing the total number of flood-related deaths to 15 in the province this month. Banteay Meanchey provincial

  • Serving coffee with a side of robots

    The eye-catching glass building surrounded by greenery at the intersection of Streets 371 and 2002 in Phnom Penh’s Sen Sok district is more than just another coffee shop where you can while away a few hours. UrHobby House cafe is filled with robots and characters from

  • Cintri strike ends, workers’ contracts to be terminated

    CINTRI (Cambodia) Ltd rubbish collectors who have been on strike for the past 13 days agreed to return to work starting Wednesday evening after the company agreed to terminate their contracts at the end of January next year and provide seniority payments and other benefits to