Jubilee USA Statement on G20 Communiqué on COVID Debt, Tax and Aid Plans

Washington DC- The G20 Finance Ministers and Central Bank Governors met on global COVID-19 response plans ahead of the Annual IMF and World Bank Meetings. They agreed to extend debt payment relief for the 73 poorest countries and discussed tax, aid and debt cancellation processes.

Eric LeCompte the Executive Director of Jubilee USA Network and a United Nations finance expert, releases the following statement on the G20 Communiqué and the Finance Ministers and Central Bank Governors Meeting:

"Debt payment relief for the poorest countries is good news, but it's a short term solution.

"We're disappointed not to have a stronger agreement on a permanent debt reduction process yet, but it's hopeful that the G20 is holding a special meeting on this process in the coming weeks.

"The only way for some developing countries to have the resources they need to recover from the coronavirus crisis is to have a process that permanently reduces their debts.

"The G7, UN agencies, the Pope and hundreds of organizations are calling for a debt relief process so that countries can fight growing poverty and the loss of jobs.

"The G20 should be doing more to press the private sector on debt relief. It seems since April, the position of the G20 has weakened on private sector participation in debt relief.

"Too many developing countries in crisis are still left out of debt relief plans. It's positive that G20 negotiations are looking at how to support more countries. Given that some of the greatest increases in poverty and job loss are in these developing countries, the G20 can't afford to wait any longer on moving forward a plan.

"The G20 had vowed to make more progress on a global plan for taxing digital revenues and ensuring multinationals pay tax. Part of the reason we are in this mess, is because countries aren't raising revenues. Now revenues are plummeting in many countries because of the pandemic and the G20 must make more progress on global tax solutions.

"One of the most important ways to combat the coronavirus and support developing countries in crisis is to access trillions of dollars in global reserve funds or the Special Drawing Rights. Unfortunately the G20 made little progress on authorizing what could be a lifesaving measure for countries in crisis."

Read the G20 communique here.

Read Jubilee USA's press release on the IMF's World Economic Outlook and Global Financial Stability reports here