The “Twenty” considers freezing the debt of low-income countries

The “Twenty” considers freezing the debt of low-income countries

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The “Twenty” considers freezing the debt of low-income countries

WASHINGTON (Reuters) – The United States on Tuesday urged China and the private sector to increase their participation in the… G20 To freeze the debts of low-income countries that have been hit hard by the COVID-19 pandemic and to establish a common framework for restructuring their debts.
A senior US Treasury official said that Washington is open to expanding the common framework for debt treatment agreed upon by the Group of Twenty and the Paris Club, to include not only low-income countries, but also some lower-middle-income countries that suffer from high debt burdens.
G20 finance ministers and central bank governors will review progress on the debt issue when they meet in Venice, Italy on July 9-10 amid growing alarm over a looming debt crisis.
Some Chinese entities have not fully participated in the G-20 initiative to suspend debt service, or freeze debt, and Washington is urging Beijing to fully participate in these two initiatives.
The US official also said that Washington will urge the G20 countries to continue providing fiscal stimulus in public spending to help the global recovery and to make specific investments to address climate change and income inequality.