Eurodad reaction to the G20 suspension of debt payments
#Covid-19 #IMF #Debt #SpringMeetings #G20 #WHO #ODA #JobVacancy
On Wednesday 15 April, the G20 announced the suspension of debt payments for the world's poorest countries until the end of 2020.
The G20 agreement is significant and will support the immediate Covid-19 response. But the breathing space it provides countries may be short-lived. By agreeing only to postpone payments, debt crisis risks are being stored up for later. The upshot is that this costs creditors nothing, and borrowing countries simply have bigger repayments to make down the line."
Mark Perera, Policy and Advocacy Manager, Debt Justice, Eurodad
More information on the current situation can be found below, including details of the global campaign calling for the cancellation of developing country debt.
Aid levels show donors far from delivering on commitments as Covid-19 pandemic calls for more and better aid
New statistics published on Thursday in the midst of the Covid-19 pandemic show donors are far from delivering on their long-standing commitments and urgently need to reassess the way aid is delivered to target those who are being left behind.
As Covid-19 spreads across the globe it threatens to disproportionately hit developing countries. The pandemic doesn't only threaten a health crisis, but also risks plunging two-thirds of the world's population living in developing countries outside China, into a prolonged situation of deepened economic and social vulnerability and poverty.
The world is facing an unprecedented humanitarian crisis triggered by the outbreak of Covid-19. As the Bretton Woods Institutions deliver their virtual Spring Meetings, there are strong calls for an ambitious response to a world confronted with the ‘the worst recession since the Great Depression’. Short term measures are essential and urgent. However, long term measures will be the key determinant of the future for ourselves and the planet at this critical juncture.
Note: An analysis of the Spring Meetings will also be published shortly.
More than 100 organisations are calling for developing country debt to be cancelled to fight the Covid-19 health and economic crisis.
On 13 April, the IMF announced an initiative to provide debt relief for a selected group of 25 countries. This is a welcome development at a time when developing countries are desperately seeking emergency financing and require an immediate cancellation over all external debt payments due in 2020, but more is needed.
Reports & useful resources
An overwhelming amount of information regarding the impact of and response to Covid-19 has been published over the last month. Through this blog, we hope to provide a guide to understanding the key issues for developing countries.
El costo humano y económico de la crisis causada por Covid-19 es un claro recordatorio de la fragilidad de nuestra sociedad globalizada. La capacidad de los países para contener la pandemia se define por su capacidad para proporcionar protección efectiva a los más vulnerables.
Emergency financing for low-income economies to tackle Covid-19: Cost estimates for the impact of the crisis and emergency financing requirements
This briefing is provided to inform development of policy responses to the Covid-19 crisis and in support of calls from wider civil society for debt cancellations for the world’s poorest countries in the face of the current crisis.
The CIDSE Secretariat, located in Brussels, is currently looking for a Senior Policy & Advocacy Advisor, Corporate Regulation and Human Rights to join its team as soon as possible. The position is 100% / 5 days per week, on a permanent contract. Click here for the full job vacancy. Deadline: 18 April.
This newsletter has been produced with co-funding from the European Union, Bread for the World and Norad. The contents of this publication are the sole responsibility of Eurodad and can under no circumstances be regarded as reflecting the position of the funders.