G20: Economic Recovery Uncertain, Subject to Downside Risks

The G20 countries warned in an official statement on Friday that the global economic recovery remains highly uncertain, and is subject to mounting downside risks, pledging to contain the pandemic as the only key to recovery.

It also called on creditors and borrowers to expand transparency on debt, urging private creditors to participate in G20 debt relief Initiative.

The leaders indicated that the corona crisis has hit the most vulnerable groups in society, who are in need of a debt relief after a temporary freeze on debt until June 2021.

The statement said that the G20 leaders would reconsider extending the freeze by activating the Debt Service Suspension Initiative (DSSI) for another six months, endorsing, along with the Paris Club, a common framework for dealing with debt issues.

[caption id="attachment_175247" align="aligncenter" width="1854"] A virtual Family Photo, projected on the walls of At-Turaif District in Ad-Diriyah.[/caption]

"We are determined to continue to use all available policy tools as long as it is required to protect people's lives, jobs, and incomes, support the global economic recovery, and enhance the resilience of the financial system, while protecting against downside risks," it added.

The G20 voiced their support for the International Monetary Fund (IMF) to explore more tools to address critical challenges faced by developing countries. Meanwhile, there was no mention of a new allocation of the International Monetary Fund's SDRs.