G20 leaders have endorsed a plan to reduce or reschedule the debts of poorer countries hit hard by the Covid-19 pandemic.
Meeting virtually for their 2020 summit, the leaders also agreed to extend by six months an existing programme to defer the debt service payments of poor countries so they could divert the money to fighting Covid-19 and reviving their economies battered by the pandemic.
The Debt Service Suspension Initiative (DSSI) initially suspended debt service payments from May 1 2020 until the end of the year. The G20 and the Paris Club have agreed to extend the debt service for a further six months, until June 30 2021.
And they decided that the G20 would determine next year whether to defer the debt service payments for another six months, until the end of 2021, depending on its assessment of the needs of the indebted countries. They noted that the Paris Club – of 22 government creditors – had also agreed to this possible extension.
The G20 leaders agreed that debt service suspension would not be enough to help deeply indebted countries and so they also decided…