MOSCOW (Pakistan Point News / Sputnik - 26th September, 2020) The G20 debt service suspension initiative has received 46 applications from various countries across the world, the forum announced on Friday.
Earlier in the day, the G20 International Financial Architecture Working Group (IFA WG) had the last of its September meetings, where it discussed a range of financial issue, including updates on the implementation the Debt Service Suspension Initiative (DSSI), which entails a suspension of principal and interest payments on debt due between 1 May and 31 December 2020 by the world's poorest countries to bilateral creditors due to the COVID-19 pandemic and its negative effect on the global economy.
"The DSSI, now in its fifth month of implementation, has received 46 applications to date from eligible countries in different regions of the world, with the most from Africa totaling to 30 countries," the forum said in a statement.
The IFA WG will hold additional meetings to present the findings and recommendations, which will touch upon potentially extending the DSSI beyond this year.
"All major official bilateral creditors remain committed to suspending due debt service payments to the most vulnerable countries in these challenging times. These commitments are complemented by the support of the IMF and Multilateral Development Banks to DSSI-eligible countries," Bandr Alhomaly, the Saudi G20 Presidency IFA WG policy lead, said.
According to the G20, the initiative also provides approximately $14 billion of immediate liquidity relief by bilateral lenders this year alone and is also working with other international organizations on the issue.
"In addition, since late March, the IMF has provided debt relief to 28 DSSI-eligible countries and also provided financial assistance of more than USD88 billion to 81 countries, 53 of which are DSSI-eligible countries facing the economic impact of COVID-19," the forum added.
The pandemic has crippled national economies of many countries across the globe, which found themselves severely unprepared to handle the economic downturn caused by the current crisis.
