Washington DC – As G20 presidents and prime ministers convene, the IMF warns some countries are left out of the G20's new debt reduction process. Last Friday, the United States Treasury stated support for extending debt relief beyond the initial 73 poor countries which qualify for the G20 debt reduction process.
"The United States realizes that more countries will need debt relief to get beyond the coronavirus economic crisis," stated Eric LeCompte, the executive director of the religious development group, Jubilee USA. LeCompte worked with successive US Administrations and Republican and Democratic Members of Congress on their debt relief policies for more than a decade. "While we've seen a lot of progress over the last months, the G20 will need to go beyond existing debt relief initiatives."
This weekend, the G20 is expected to formally approve the “Common Framework for Debt Treatment beyond the Debt Service Suspension Initiative.”
Middle-income countries like Argentina and Ecuador recently finished debt restructurings. Lebanon and Suriname are confronting debt crises. Absolute Strategy, a London research firm, notes 40% of JP Morgan's emerging market debt is at risk of default in the next year.
“As more countries face crisis, we need solutions that can help stabilize the global economy,” said LeCompte.