G20 Finance Chiefs To Talk Covid Recovery, Aid To Poor Countries
Umer Jamshaid Published February 26, 2021 | 09:40 AM
Milan, (UrduPoint / Pakistan Point News - 26th Feb, 2021 ) :G20 finance ministers and central bankers will gather for a video conference led by Italy Friday, hoping to align plans for relaunching the global economy after the coronavirus pandemic and to limit harm to the worst-off nations shut out of the race for vaccines.
Beginning at 12:30 pm local time (1130 GMT), the meeting is the first in post for US President Joe Biden's new Treasury Secretary Janet Yellen, expected to be far less confrontational than Donald Trump's representatives at past gatherings.
"With the new American administration, it will certainly be easier to reach a deal" for increased aid to poorer nations, international economy professor Lucia Tajoli of Milan's Polytechnic business school said.
Bu while "Joe Biden's approach to international cooperation is much more open... it won't be easy to gather funds given the economic crisis hitting many countries," she added.
On Thursday, Washington urged wealthy G20 countries to launch a truly global, coordinated vaccination campaign.
"Without access to vaccines, low-income countries in particular will experience further tragic loss of life and needlessly delay their economic recoveries," Yellen wrote in an open letter to G20 finance counterparts.
Yellen also signalled openness to issuing new so-called Special Drawing Rights (SDRs) at the International Monetary Fund to worse-off countries, reversing a Trump position.
Several G20 countries have already suggested the move, after the financial instruments -- which can be exchanged for US Dollars, Euros, Chinese renminbi, Japanese Yen or British Pounds -- proved their worth as crisis firefighting tools in 2009.
Financial crisis-era SDR allocations amounted to around half the $500 billion now under discussion.
Last year, the rich country club also agreed a pause in debt interest payments for the poorest countries, extending it until June 30 this year.
And in November the G20 finance ministers agreed a framework for reducing debt burdens.
So far Chad, Zambia and Ethiopia have asked for their debt to be restructured.
"Debt alleviation, which had been swept under the rug, is now on the agenda and we can certainly expect a step forward," said Federico Niglia, an international relations professor at Rome's Luiss university.
So far just 46 of the 73 eligible countries have delayed debt interest payments worth a total of $5.7 billion.
The debt question deals with minuscule amounts compared with the $14 trillion mobilised by G20 countries to reboot their own pandemic-hit economies.
IMF chief Kristalina Georgieva on Wednesday warned that "the prospects for recovery are diverging dangerously across countries and regions", mainly due to "a slow rollout of vaccines" in most of the world.
The global body has forecast a 5.5 percent rebound in worldwide GDP this year, followed by 4.2 percent growth in 2022.
But "it is going to be a long and uncertain ascent", Georgieva said.
The G20 gathering will also turn its gaze onto international finance, as although markets have proved resilient through the health crisis, borrowing costs have risen sharply since early February.
One factor is Biden's planned $1.9 trillion stimulus programme for the US economy.
Luiss professor Niglia noted that investors fear that "an uncontrolled rebound in the global economy could trigger a surge in inflation".
Related Topics
Recent Stories
President Raisi leaves for Iran from Karachi
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 24 April 2024
Today Gold Rate in Pakistan 24 April 2024
Punjab CM inaugurates Pakistan’s first Virtual Women Police Station
Dutch model Donny Roelvink embraces Islam
Experts raise concerns over introduction of 10-stick packs
Iranian president arrives in Karachi
Law Minister expresses Govt's resolve to address issue of missing persons
Rizwan’s batting order may be changed: Sources
Nawaz Sharif to visit Guangzhou exhibition in China
FM Dar not traveling to China: Foreign Office
PM takes notice of deliberate delay in tax cases
More Stories From Miscellaneous
-
PDMA predicts gusty wind, rain with thunder, hails
15 hours ago -
Iranian president Raisi given guard of honour at PM House
2 days ago -
Intellectuals, writers accolades Naseer Mirza on his literary contribution
3 days ago -
Bahawalpur Adabi Sangat hosts memorable mushaira
3 days ago -
Cattle farming vital to alleviate poverty in rural areas
3 days ago -
Pakistan: A land of tourism, archeological wonders
3 days ago
-
Transforming education sector: from job hunters to job creators
5 days ago -
Amjad Bobby remembered on 19th death anniversary for timeless contributions to music
9 days ago -
Legendary actor Nadeem’s 26 films released on Eid-ul-Fitr days in 50 years
10 days ago -
Besant Hall Cultural Centre to celebrate evening with Sanam Marvi on 26 April
10 days ago -
Radio Bahawalpur presents program “Eidi Shidi”
13 days ago -
Radio Bahawalpur to broadcast Eid programs
15 days ago