Mexico, Argentina Urge More Help for Middle Income Countries - Joint Statement
The governments of Argentina and Mexico on Wednesday urged the international community to provide more support to the middle income nations facing serious challenges due to the COVID-19 pandemic
"In the context of the G20 Finance Ministers and Central banks meeting, it is imperative to assess the impact of the pandemic, as well as the scope and reach of the new support mechanisms, currently being discussed, to promote the economic recover of Low as well as Middle-Income Countries (MICs)," both governments said in a joint statement released during the International Monetary Fund and World Bank spring meetings in Washington.
Most people who may face extreme poverty due to the current crisis reside in countries with middle levels of income, the statement read.
"MICs tend to have - albeit sometimes intermittently - access to capital markets, but not at low rates. For this reason, it is critical to consider new mechanisms in which the new proportionally-allocated SDRs can benefit MICs in need," the two governments said.
Mexico and Argentina also called on the global community to consider the possibility of creating a special fund within international financial organizations in order to provide more orderly debt restructuring to struggling middle income nations.