In order to relieve the poor countries facing the impact of Covid-19, the G20 decided on April 7, 2021 to extend the moratorium on the payment of interest on the debt of poor countries until the end of the year.
Indeed, this moratorium was decided in April 2020 in the midst of the spread of Covid-19 and was extended last October until June 30, 2021. The G20 specifies that the extension approved on April 7 is the last.
According to Agence France Presse, to date, 46 countries out of the 73 eligible, have requested and obtained a postponement of the payment of interest, for an amount of 5.7 billion dollars.
The G20 also announced its support for the IMF (International Monetary Fund) initiative to increase aid to the poorest countries in the form of a new issue of special drawing rights amounting to 650 billion dollars. This issue will allow an increase in the IMF’s lending capacities.