The holders of the G20 Finance portfolios also agreed to increase the resources of the International Monetary Fund (IMF) by 650,000 million dollars, so that it can better help vulnerable countries to combat the effects of the pandemic, said the Italian Minister of Economy. , Daniele Franco, at the press conference after the second virtual meeting.
They have agreed that it is necessary to maintain the stimulus plans to promote recovery after the pandemic and that a premature withdrawal of them would slow this process, while they have debated the possibility of imposing a global corporate tax, although this matter will continue on the table at their meeting in Venice (Italy) in July.
“We celebrate the progress made by the Debt Service Suspension Initiative to facilitate increased spending related to the pandemic (…) In light of the persistence of significant liquidity needs related to COVID-19, we agree to its final extension for six months until the end of December 2021 “, they have indicated, according to an official statement.
Appeal to the private sector and the IMF
The ministers and governors of the central banks have also reiterated their call to the private sector to join in “comparable conditions.”
“This final extension will allow beneficiary countries to mobilize more resources to meet the challenges of the crisis and, where appropriate, take a more structural approach to address debt vulnerabilities, including through a higher quality credit tranche supported by the IMF, “the statement said.
They have shared that it is necessary to intensify their “support to vulnerable countries as they address the challenges associated with the COVID-19 pandemic” and, in this regard, they have called on the IMF to “present a comprehensive proposal for a new $ 650 billion general allocation of special drawing rights (SDRs), “which would improve global liquidity and aid the global recovery.
“We also invite the IMF to submit proposals to improve transparency and accountability in the use of SDRs, while preserving the reserve asset characteristic of SDRs,” the statement stressed.
“In parallel, we ask the IMF to explore options for members to channel SDRs voluntarily for the benefit of vulnerable countries, without delaying the process of a new allocation,” he adds.
rml (efe, afp)