G-7 Backs Debt Help For Poor Nations, Splits on IMF Fillip
As Bloomberg reports the G-7 are inching closer to a combined approach to provide assistance to poor nations that are expected to be hard-hit by the economic spill-overs from the COVID-19 pandemic. Initial reports indicate that a plan for partial moratorium on debt servicing may be approved and financed by the G-7 and their central banks. There are still splits concerning the role of the IMF and possible dramatic increase of the IMF’s ability to finance large scale economic restructuring, even though a moderate boost of its lending power was approved. Further the dollar shortage in the emerging markets is also to be addressed with specific swap and credit lines both in bilateral and IMF facilities. However, public rescue funds are not substitute for private investment and Deriveum is likely to play critical role in the mid-to-long term economic recovery of the emerging markets.
For more information on the G-7 actions, please click on the link below
