The International Monetary Fund (IMF) has voiced its concern about growing debt levels of poorer countries which came against the backdrop of the G20 with the largest and fastest-growing economies agreeing to suspend debt repayments and interest payments in favour of the world’s poorest countries until the end of year 2020. This will help 44 countries defer debts of USD 5 billion in repayments which could give them the space and means to continue their fight against Covid-19. Also predicted are global debt levels reaching 100% of GDP in 2021.
At best such a step could be a face saving and time buying means which does not in any way reduce the importance of a planned debt restructuring.
Some days back IMF put out that the global economy is still in deep recession though not of the scale as predicted in June this year.
More bad news is in store. IMF has warned that the pandemic-induced global recession shall leave a lasting legacy with extreme poverty likely to rise for the first time in more than two decades.
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