Loan deferral program for poor countries extended
Tashkent, Uzbekistan (UzDaily.com) -- Ministers of finance and heads of central banks of the G20 countries held an online meeting on the external debt of the countries of the world. During the meeting, the following key decisions were made.
First, the program of deferred repayment of loans for poor countries was extended by 6 months. Given the magnitude of the COVID-19 crisis, significant debt vulnerabilities and deteriorating prospects in many low-income countries, the G20 countries have agreed to extend the loan deferral program for poor countries to enable them to continue to take action against the coronavirus pandemic.
An agreement was also reached that by the time of the spring meetings of the IMF and the World Bank in 2021, the question will be further studied - whether the economic and financial situation requires an extension of the program for another six months.
Second, G-20 finance ministers and central bank governors have also approved a deferral of payments under new tax rules for global tech companies, including Google LLC and Apple Inc., until mid-2021.
Third, the update of the G20 Action Plan in response to COVID-19, adopted on 15 April 2020, was approved. In addition, the G20 asked the IMF to prepare an analysis of the external financing needs of low-income developing countries in the coming years and options for their sustainable financing, and the World Bank to scale up its work and use new instruments to mobilize private financing for these countries.
In general, the G20 countries noted signs of a global economic recovery after the pandemic, but also stressed that the growth rates in the organization's member states have been uneven, so the risks of a worsening situation remain. At the same time, they intend to continue to provide support to developing countries to maintain stability in the field of taxation. The G20 also called on the World Bank to expand its tools to stimulate the private sector in low-income countries.