RIYADH, (Pakistan Point News - 17th Apr, 2020) G20 finance ministers and central bank governors have affirmed that overcoming the COVID-19 pandemic is "an urgent collective priority", and they will spare no effort, both individually and collectively, to protect lives, bring the pandemic under control, safeguard people’s jobs and incomes.
"Our urgent collective priority is to overcome the COVID-19 pandemic and its intertwined health, social and economic impacts. We are determined to spare no effort, both individually and collectively, to protect lives, bring the pandemic under control, safeguard people’s jobs and incomes, support the global economy during and after this phase and ensure the resilience of the financial system," according to a final communique issued at the end of their second virtual meeting held yesterday.
"We have taken immediate and exceptional measures, domestically and internationally, to address the COVID-19 pandemic and its impact, including by implementing unprecedented fiscal, monetary and financial stability actions and ensuring that the International Financial Institutions (IFIs) can provide critical support to developing and low-income countries," reads the announcement which was carried by the Saudi Press Agency, SPA.
The countries welcomed steps taken by the International Monetary Fund (IMF), the World Bank Group (WBG) and other IFIs to help countries in need. "We support the further adoption and swift implementation of a strong financial response to help countries in need and to uphold global financial stability and resilience. As outlined in our Action Plan, this financial response includes: delivering a comprehensive IMF support package; implementing urgently the support proposed by the WBG and multilateral development banks amounting to more than US$200 billion; addressing debt vulnerabilities in low-income countries due to the pandemic; and enhancing coordination among international organisations to maximize their impact and optimize the use of resources," they said.
"We support a time-bound suspension of debt service payments for the poorest countries that request forbearance. We agreed on a coordinated approach with a common term sheet providing the key features for this debt service suspension initiative, which is also agreed by the Paris Club. All bilateral official creditors will participate in this initiative, consistent with their national laws and internal procedures. We call on private creditors, working through the Institute of International Finance, to participate in the initiative on comparable terms. We ask multilateral development banks to further explore the options for the suspension of debt service payments over the suspension period, while maintaining their current rating and low cost of funding. We call on creditors to continue to closely coordinate in the implementation phase of this initiative," the statement said.
"We have taken immediate and exceptional measures to support global financial stability and resilience, including the deployment and expansion of bilateral swap lines and the introduction of repo facilities by central banks in line with their mandates. We also have taken regulatory and supervisory measures to ensure that the financial system continues to support the economy. We remain vigilant and ready to take additional measures as needed.
"The Action Plan endorsed by us will be reviewed regularly as the impact of the COVID-19 pandemic unfolds. We will track the implementation and report on this plan, and any further updates to it, at the G20 Finance Ministers and Central Bank Governors Meeting in July 2020 and for the G20 Leaders’ Summit in November 2020. We stand ready to act promptly and take any further action that may be required. We reiterate our commitment to use all available policy tools to safeguard against downside risks, ensure a swift recovery and achieve strong, sustainable, balanced and inclusive growth, while continuing to tackle the global challenges, notably those related to addressing the tax challenges arising from the digitalization of the economy and enhancing access to opportunities," the statement noted.
