The G20 group of wealthy nations is preparing to extend its offer of debt relief for the world’s poorest countries into next year, but faces a growing chorus of criticism for its limited ambition in the face of a mounting crisis in emerging economies.
G20 ministers will meet on Wednesday during this week’s annual meetings of the IMF and World Bank, when they are expected to announce a six-month extension of the group’s debt service suspension initiative (DSSI) under which 73 eligible countries can apply to G20 governments and their policy banks to postpone debt repayments due this year and spread them over four years.
The original initiative was announced as the pandemic took hold across the globe this spring, to offer short-term relief to poor countries struggling to meet the immediate healthcare, social and economic costs.