G7 backs temporary debt relief for poor countries if G20 agrees

Group of Seven (G7) finance officials vowed on Tuesday to continue acting as needed to fight the coronavirus pandemic and stabilize the global economy, and supported temporary debt relief for countries the poorest.

In a joint statement, G7 the finance ministers and the central bankers declared themselves ready to envisage “a suspension in the time of the payments of the service of the debt due on the official bilateral claims for all the countries eligible for world Bank concessional financing ”if China and other countries are part of the Top 20 Economies Group, and as agreed with the Paris Club group of creditors.

They also called for more contributions to the International Monetary FundFacilities that support the poorest countries, and said that the debt relief effort should include private creditors on a voluntary basis, as well as efforts to improve debt transparency.