Help from the G20 to the most needed countries
This kind of help is going to be given as a last debt moratorium for the most needed countries, the decision was taken the past 7th of April.
It was called “Debt Service Suspension Initiative” and it was decided by the G20 with Saudi Arabia in the presidency and it affects a total of 73 nations of which 38 of them are African. Specifically this extension will have a duration of 6 months, until December 2021.
The purpose of this action is to let the countries get all their capacity on getting better their economy until the end of the year, so they can face the crisis challenge and when they can focus on the vulnerability of the debt incurred.
To make this easier, the IMF launches the SDR, Special Drawing Rights, worth about 650.000 million dollars, that will improve the liquidity and the recovery. Also this will avoid a high financial burden. Once these rights are known, the main bankers and ministers from the G20 have asked that the member countries may channel the SDR voluntarily, without delaying new assignments.
The next main point from the summit was about the maintenance of expansionary financial policies because nowadays the uncertainty makes the main countries to need a strong structure and endorsed by the central Banks or MF. And also they talked about the pandemic before looking for the stability and a lasting viability, the necessity to make us all get out of the crisis on the same level so later we will be able to face the economic crisis.
Furthermore, they assume that those economic structures are making a containment to the sanitary crisis, and they will still be going by the green and sustainable economy.
To end, they didn’t make any consensus about the introduction of a global tax for the enterprises, and it remains pending as one of the main points for the next summit in Venice 2021.