Bali, The Indonesia Post – Indonesia’s G20 presidency has pushed for debt relief for developing and poor countries considering that their total debt has now reached US$12.9 billion due to the COVID-19 pandemic.
Expert Staff for Macroeconomics and International Finance at the Indonesian Ministry of Finance, Wempi Saputra, in an official statement in Nusa Dua, Bali, Tuesday, said that the G20 summit is expected to immediately decide on this debt restructuring.
“This is to accelerate global economic recovery, especially for poor countries,” said Wempi.
Until now, there have been around 48 poor countries that have received relief from debt repayment delays, but the delay is not a solution because it still exists and must be resolved.
Therefore, he continued, Indonesia as the G20 Presidency must become a facilitator for poor countries so that they can find solutions to their debt payments.
Wempi emphasized that Indonesia played an active role as the G20 Presidency by providing full and intense support in carrying this debt settlement message.
Moreover, he said, the prolonged pandemic has caused economic contraction in a number of countries, especially for poor countries.
High inflationary pressures and an economic slowdown have caused Zambia, Chad, and Ethiopia, to have difficulty paying their debts.
“No wonder the economic recovery has stalled,” said Wempi.
The three countries are currently undergoing a debt settlement program or the so-called common framework for debt treatment and they are becoming a pilot project for debt settlement for poor countries.
“If this is successful then this program can be applied to other countries,” said Wempi.
In addition to debt problems, he said, Indonesia also encourages developed countries to assist infrastructure development in poor countries, such as through capacity building.
The push was made because the global crisis had destroyed the economic foundations of all countries, making it more difficult for them to build their infrastructure. (mhn/bbs)
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