News & Analysis: G20

Private lenders need to step up on African debt relief

“The impasse between the G-20 and international financiers has bolstered the position of Chinese lenders, who hold an additional $64 billion of disbursed credits in Africa alone, and who also are pursuing painstaking restructuring talks. Taken together, the position of the Chinese and the financiers could make it harder for African governments to respond to the pandemic.”

via Atlantic Council

As Africa Faces COVID-19, Chinese Debt Relief is a Welcome Development

“Given the scale of Africa’s debt crisis, it should be taken as a great reassurance that China, its largest official lender, has warmed to the idea of cancellations.”

via Council on Foreign Relations

Not much give from China in its relationship with Africa

“Despite a warm African response to the recent ‘Extraordinary China-Africa Summit on Solidarity Against COVID-19’, not much new came out of the virtual meeting. Crucially, there was no movement on cancellation of the $150bn in concessional loan debt.”

via SAIIA

Kenyan President Uhuru Kenyatta says his country needs ‘fiscal space’ amid the COVID-19 crisis

“‘Coronavirus is mainly a health issue, and our key focus is ensuring that we keep our people safe,’ he said. ‘But this is also an economic crisis because it has resulted in some key sectors hugely affected by lockdowns. We were forced to close our airspace, which affected tourism, a very critical part of our economy.'”

via Atlantic Council

China’s debt relief for Africa: Emerging deliberations

“To date, the Chinese government has made two specific commitments on debt relief. The first was the G-20 Debt Service Suspension Initiative for Poorest Countries reached by finance ministers and central bank governors on April 15.”

via Brookings Institution

All eyes on China as Africa spurns G20 debt relief plan

“Some African countries are opting to negotiate debt relief individually with China and other rich nations because of concerns they will be blocked from financial markets by the G20 debt deal to help poorer countries get through the economic shock of the coronavirus pandemic.”

via South China Morning Post

Virus will push up to 60 million into extreme poverty, World Bank warns

“Up to 60m people will be pushed into extreme poverty by the economic consequences of the coronavirus crisis, and current recovery efforts are not enough, David Malpass, president of the World Bank, has warned. The Bank expects world economic output to contract by as much as 5 per cent in 2020, erasing efforts over the past three years to alleviate poverty in the world’s poorest countries.”

via Financial Times

How to ensure Africa has the financial resources to address COVID-19 (podcast)

“In Africa’s case, the economic crisis actually preceded the health crisis because it started out in the advanced economies and also in China. Africa began to feel the effects before it started to register a significant number of cases on the continent.”

via Brookings Institution

IIF Letter: A Potential Approach to Voluntary Private Sector Participation in the DSSI

“As policymakers and the private sector financial community assess the immediate and potential longer-term financial, economic and social impact of COVID-19, we believe that the G20 DSSI is of great importance for vulnerable in-scope countries.”

via IIF

Why the Global Debt of Poor Nations Must Be Canceled

“Immediate and forceful action on debt will prevent a humanitarian disaster today and shore up our economy for tomorrow. We need to immediately divert resources from servicing debt toward responding adequately to the pandemic. We need to impede a temporary health crisis from turning into a chronic financial meltdown that could last for years, even decades.”

via New York Times