Group of Seven finance ministers said on Wednesday that a debt relief initiative for the world’s poorest countries could be extended beyond the end of the year to help deal with the economic fallout from the the coronavirus pandemic. In a lengthy joint statement, G7 finance ministers urged all official creditors to join the initiative, called for enhanced public debt data reporting and said that all creditors – official and private – should make responsible lending decisions in line with debt sustainability guidelines.

In an apparent reference to practices allegedly used by China, one of the biggest creditors to low-income countries, ministers from the world’s most advanced economies also said creditors should fully disclose government debt terms. and limiting the use of confidentiality clauses, including for public companies. businesses. The statement follows a videoconference meeting of ministers amid warnings that low-income and emerging market economies will need more than the International Monetary Fund’s initial estimate of $2.5 trillion to overcome the crisis.

A debt relief initiative proposed by the Group of 20 major economies, which includes China, and the Paris Club of official creditors could provide about $12 billion in additional liquidity through the end of the year. But it has only attracted applications from half of the 73 eligible countries so far, and private sector participation has stalled. IMF Managing Director Kristalina Georgieva told The Washington Post in an online interview that G7 officials agreed to “work tirelessly” to ensure that all eligible countries can benefit from the debt relief package.

Georgieva told Reuters last month that some countries were reluctant to seek debt relief under the G20 plan, fearing it could hurt their credit ratings. On Wednesday, she said “a small universe” of emerging countries may need to restructure their debt in the future, given the impact of the economic crisis and a sharp fall in incomes in countries exporting raw materials.

World Bank President David Malpass warned last week that ‘much more’ debt relief is needed, urging all commercial creditors to ‘participate on comparable terms and not exploit the relief of the debt of others”. In their statement, the G7 Ministers underlined the importance of private sector financing for sustainable development. They also called for rapid progress in creating a database of private sector lending to low-income countries.

The ministerial meeting came days after US President Donald Trump called the G7 an ‘obsolete’ body and said he would invite Russia, Australia, India and South Korea to join in. a leaders’ summit postponed to September. Canada, France, Germany, the European Union and Britain have rejected Trump’s suggestion to readmit Russia, which was expelled after its 2014 annexation of Ukraine’s Crimea region. Others like Japan did not weigh in.

Read also : Coronavirus lockdown: NLS alumni organize chartered flight to ferry 180 migrant workers to Raipur

Read also : Live coronavirus updates: Defense Secy tests positive; India reports 9,304 new cases in one day