From: Jubilee USA Network
WASHINGTON - The G7 supports a process for debt cancellation for vulnerable countries, they announced this morning after
Treasury convened a special Finance Ministers meeting. In a G7 statement, the ministers also encouraged an extension of
the G20 Debt Service Suspension Initiative (DSSI) into next year for the world’s 73 poorest countries.
"The G7 recognizes that some countries will need debt cancellation and now is calling for a process to cut debts,"
stated Eric LeCompte, the Executive Director of Jubilee USA Network and a United Nations finance expert. "With the
poorest countries struggling with the economic and health impacts of the coronavirus, countries desperately need more
aid and debt relief."
In April, the G20 agreed to a process for the 73 poorest countries to stop paying debts through 2020. So far, the
initiative has allowed 43 of the poorest countries to free $5.3 billion for health and social spending to respond to the
pandemic.
The G7 statement encouraged private creditors and banks to "voluntarily" participate in the debt payment suspension and
seemed to criticize China for not fully participating in the initiative.
"Reading between the lines, the G7's statement is hard on China and weak on private creditor participation," said
LeCompte. "All Chinese government entities should stop taking debt payments from poor countries and stronger action must
be taken to ensure the private sector joins the coronavirus debt relief initiatives."
Earlier this month, several Finance Ministers joined the World Bank and IMF chiefs in calling to extend the DSSI into
2021 and arguing that private creditors should stop collecting poor country debts.
"It's time to extend debt relief initiatives to all developing countries, including Middle-Income Countries, struggling
with the coronavirus pandemic," shared LeCompte.
In October and November, G20, IMF and World Bank meetings will discuss the future of coronavirus debt suspension and
relief efforts.
Read the G7 Statement here.
Jubilee USA Network is an alliance of more than 75 US organizations and 650 faith communities working with 50 Jubilee
global partners. Jubilee USA builds an economy that serves, protects and promotes the participation of the most
vulnerable. Jubilee USA wins critical global financial reforms and won more than $130 billion in debt relief to benefit
the world's poorest people. www.jubileeusa.org