In order to cushion the economic impact of the coronavirus pandemic, the International Chamber of Commerce (ICC)-a global trade union, the International Trade Union Confederation (ITUC) and Global Citizen-a group pushing to end extreme poverty by 2030, have urged the Group of 20 major economies to extend and expand a freeze in debt service payments to help not just the poorest, but also middle-income countries.
The Finance Ministers of the G20 are scheduled to meet online on July 18. The ICC, ITUC and Global Citizens have called on the G20 Finance Ministers, to take additional steps, so as to boost the participation of private creditors to help the countries facing the brunt of economy fallout.
The Group wrote an open letter that is to published on July 13, stating further steps were needed since the global economy was facing an even deeper downturn than projected in April.
In the month of April, the G20 and Paris Club of creditors announced a freeze in debt service payments for the world’s 73 poorest countries through year-end.
In the letter, the group called for greater contributions to enable the International Monetary Fund to continue providing debt service relief to its poorest members through April 2022.
So far, 41 countries have applied for relief from debt servicing under the G20 Debt Service Suspension Initiative (DSSI), and the Paris Club has signed agreements with 20 countries.