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G20 declares framework to deepen debt relief for poor nations

>G20 nations declared Friday a "common framework" for an extended debt restructuring plan for coronavirus-ravaged developing countries, but campaigners cautioned that more was needed to alleviate a "wave of debt crises".

>G20 nations last month agreed a six-month extension to a debt suspension initiative until June next year, falling short of calls by the World Bank and campaigners for a full-year renewal.

>The framework, also agreed by the Paris Club of creditor countries, goes beyond that initiative to reschedule or reduce debts of vulnerable nations on a "case-by-case approach", G20 finance ministers and central bankers said.

>"In principle, debt treatments will not be conducted in the form of debt write-off or cancellation," they said in a statement following a virtual meeting hosted by the current G20 president Saudi Arabia.

>"If, in the most difficult cases, debt write-off or cancellation is necessary... specific consideration will be given to the fact that each participating creditor shall fulfill its domestic approval procedures in a timely manner."

>French Economy Minister Bruno Le Maire hailed the agreement on the framework as "historic".

>"For the first time, all the main bilateral creditors, members or non-members of the Paris Club, will coordinate the debt treatment of the low income countries," Le Maire said.

>"It will bring more transparency in the debt relief process and involve private creditors, who will need to commit to at least comparable terms."

https://www.france24.com/en/live-news/20201113-g20-declares-framework-to-deepen-debt-relief-for-poor-nations