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THE DEBT BURDEN OF THE POOREST COUNTRIES MAY EXTEND BEYOND 2020
Finance ministers of the Group of Seven countries stressed today, Wednesday, their commitment to formally reduce the debt burden of the poorest countries until the end of the year, and possibly for a longer period, while those countries deal with the Corona virus pandemic.
In a joint statement, the G7 finance ministers appealed to all official creditors to join the initiative and called for enhanced disclosure of public debt data and said that all creditors, from the public or private sector, must make responsible lending decisions in line with the debt sustainability guidelines.
Referring to what appeared to be practices used by China, a major creditor of low-income countries, the world's most advanced economies ministers also said that creditors must fully disclose public debt terms and limit the use of secret terms, including for owned companies To the state.
A debt relief initiative through the end of 2020 from the Group of 20 major economies and the Paris Club of official creditors has attracted applications from only half of eligible countries to date.
The Group of Seven statement stressed the importance of private financing for sustainable development, and said it looked forward to follow-up from private sector creditors after the International Finance Corporation (IFC) released a blueprint last week for their participation in debt relief efforts.
The G-7 ministers said they welcome the leadership of the International Finance Corporation and are looking for rapid progress in creating a tool to store private sector loan data for low-income countries.
In a separate statement, US Treasury Secretary Stephen Mnuchin said the group agreed to continue meeting periodically to discuss thorny economic issues as they work to restore their economies to recovery.
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