Thursday, April 16, 2020

It's Official: G20 suspends Cameroon debt for 12 months

A 12-month moratorium has been instituted by the G20 to allow poor states to face the threat of Covid-19.

The G20 finance ministers agreed on April 15 on a temporary suspension of debt service for the poorest countries. All bilateral public creditors will participate in the initiative and the G20 calls on private creditors to do the same. 

"We have agreed on a coordinated approach with a common timetable providing the main characteristics of this initiative to suspend debt service", can be read in a press release published after their exchange in dedicated videoconference to the Covid-19 pandemic. 

The idea of ​​a moratorium on the debt of the poorest countries, we learn, had already received the support of the G7 countries on April 14, but the latter had warned that they were awaiting the approval of other countries of the G20, including China, Africa's main creditor country, in agreement with the Paris Club group of creditors.

This measure concerns 76 countries of which around 40 are located in sub-Saharan Africa. In an interview broadcast on Wednesday April 15, 2020 on RFI, Emmanuel Macron had indicated that this moratorium would allow “African economies to breathe” during the crisis engendered by the epidemic. 

“It is an essential step and I think it is a great step forward. Now, it must precede other stages on which we must work, which are stages of restructuring of the African debt ”, formulated the French president, Emmanuel Macron on the waves of the RFI.