News & Analysis: G20

Gordon Brown: G20 nations must devise a global plan for growth post-COVID-19

“It would be a historic act of collective statesmanship if G20 countries agreed that the bulk of the new SDR allocations should fund Africa. And if the IMF and the multilateral development banks match the first SDR allocation with funds from their own considerable resources and make good their commitments on debt relief, we have the makings of a $2tn 21st-century Marshall Plan for the developing world.”

via Financial Times

Interview: Dr. Youssef Boutros-Ghali on COVID-19, Debt Sustainability, and Macroeconomic Policy in Africa

COVID-19 Africa Watch talks to Dr. Youssef Boutros-Ghali, former Finance Minister of Egypt and former chairman of the IMF’s International Monetary and Financial Committee, about the economic impact of the pandemic, the policy response, SDRs, and more.

via COVID-19 Africa Watch

How to get Africa out of debt

“Many African countries were already in debt distress before COVID-19, and the pandemic has made it worse, lifting average debt-to-GDP ratios from about 60% to 70%. The G20 Debt Service Suspension Initiative was extended to June 2021. But much more is needed.”

via SAIIA

Why the developing world needs a bigger pandemic response

“The appeal of SDRs for developing countries is that they fill a gap in the toolkit available to advanced economies: money creation. While advanced economies have been able effectively to print money by buying their own bonds in a world of low or negative interest rates, most developing countries cannot do that without risking instability.”

via Financial Times

The ‘blood, sweat and tears’ behind Zambia’s default

“When Zambia sold the last of its three US dollar bonds in 2015, it capped a decade in which the copper-endowed African country went from needing debt relief reserved for the world’s poorest nations to tapping the global capital markets with ease. But just five years later, that bond is in default, with the rest of Zambia’s $3bn international bond borrowings.”

via Financial Times

As new debt crisis looms, Africa needs more than world is offering

“African countries face another debt crisis and will need more long-term help than the latest G20 debt plan offers them to ward off trouble ahead and keep much-needed investments coming in, according to policymakers, analysts and investors.”

via Reuters

In reversal, Kenya plans to defer $690 million in debt payments under G20 initiative

“Kenya has changed its mind about a G20 coronavirus debt relief initiative it declined to join earlier this year, and is now planning to defer around $690 million in debt payments, its finance minister told Reuters on Wednesday.”

via Reuters

G20 and development

“The G20 in both the finance and Sherpa track should develop a set of guiding principles for engaging with low-income and fragile states in this post-COVID environment. The focus should be on mitigating the development impacts of the pandemic in both social, economic and security terms.”

via SAIIA

Zambia’s default shows new approach needed for Chinese debt

“Zambia’s debt default shows that Western lenders need to develop new ways of factoring existing Chinese loans into their decisions. In essence, the long-term consequence of Zambia’s default may be to deter Western lending to countries where China is already a creditor.”

via The Africa Report

G20 lays out wider COVID-19 debt relief

“G20 finance ministers have agreed for the first time on a new joint framework for restructuring government debt, anticipating that the coronavirus pandemic will leave some poor countries in need of deep relief.”

via Sunday Times