The finance ministers and governors of the G20 nations on Wednesday decided to suspend debt repayment to the International Monetary Fund and the World Bank by the poorest countries in an effort to bring financial stability and creating scope for a fiscal stimulus in such countries distressed by the covid-19 outbreak.
After the second virtual meeting, G20 members in a communiqué said the debt suspension including both principal and interest will be available to all least developed countries as defined by the United Nations for a period of three years with one year additional grace period.
The suspension period will start from 1 May and will last until December 2020. “All bilateral official creditors will participate in this initiative,