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Early this year, we joined other voices in calling for debt cancellation for low income countries (Lics) and in April 2020, 25 poorest countries won 6 months of debt cancellation by IMF. #CancelTheDebt @dropthedebt @EPRC_official
Early this year, we joined other voices in calling for debt cancellation for low income countries (Lics) and in April 2020, 25 poorest countries won 6 months of debt cancellation by IMF. #CancelTheDebt @dropthedebt @EPRC_official
The #G20 
leading economies finance ministers also agreed to a "time-bound suspension of debt service payments" to 76 low-income developing countries eligible to the World Bank's International Development Association (IDA).
leading economies finance ministers also agreed to a "time-bound suspension of debt service payments" to 76 low-income developing countries eligible to the World Bank's International Development Association (IDA).
So far, according to the #G20 around $5.3bn worth of debt payments from 42 countries has been suspended under the Debt Service Suspension Initiative, amounting to 1.68% of all the debt service payments to be made in 2020 by low & middle income countries (excluding China).
around $5.3bn worth of debt payments from 42 countries has been suspended under the Debt Service Suspension Initiative, amounting to 1.68% of all the debt service payments to be made in 2020 by low & middle income countries (excluding China).
While the #G20 debt decision may provide some temporary respite, it does not address longer-term problems. Instead of cancelling repayments outright, it merely pushes the can down the road; countries will just owe the money later, and will continue to pay interest. Moreover,.....
debt decision may provide some temporary respite, it does not address longer-term problems. Instead of cancelling repayments outright, it merely pushes the can down the road; countries will just owe the money later, and will continue to pay interest. Moreover,.....
...it only applies to a limited number of countries.
We awaited good news at #G20 Ministers meeting in July but in vain, actions won't suffice to avoid defaults by LICs since the move doesn't impact private lenders. An @Oxfam report shows that all the countries that are eligible
We awaited good news at #G20
Ministers meeting in July but in vain, actions won't suffice to avoid defaults by LICs since the move doesn't impact private lenders. An @Oxfam report shows that all the countries that are eligible
for #G20 initiative are still required to pay a minimum of $33.7b to service their debts in 2020. LICs are at high risk of debt distress. The amount required from them is $2.8b per month, which is double amount Uganda, Malawi & Zambia combined spent on their annual health budgets
initiative are still required to pay a minimum of $33.7b to service their debts in 2020. LICs are at high risk of debt distress. The amount required from them is $2.8b per month, which is double amount Uganda, Malawi & Zambia combined spent on their annual health budgets
LICs have very limited fiscal capacity to deal with COVID-19 pandemic, both for immediate relief measures & long-term rebuilding of their economies. The impacts of Covid-19 are worsening existing economic, social & gender inequalities. Yet we are still facing growing infection..
..rates & famine because of COVID-19, some of these countries have zero critical care units for their population.
If #G20 doesn't want to see another ‘lost decade’ for development, they must prepare for more ambitious & systemic solutions when they meet in the coming months...
If #G20
doesn't want to see another ‘lost decade’ for development, they must prepare for more ambitious & systemic solutions when they meet in the coming months...
..as we look forward to better pronouncement come November at the #G20 Heads of state, also at the #UnitedNationsAssembly & Annual meetings of @IMFNews & @WorldBank
Discussions must result in the scaling up of the Debt Service Suspension Initiative, and an urgent shift in...
Heads of state, also at the #UnitedNationsAssembly & Annual meetings of @IMFNews & @WorldBankDiscussions must result in the scaling up of the Debt Service Suspension Initiative, and an urgent shift in...
..approaches to financing. But they must also result in action on agreeing a post-Covid-19 debt relief & sustainability initiative under UN auspices to bring developing country debts down to sustainable levels & which considers countries’ long-term financing needs to meet the...
..ongoing and urgent health, education and social protection expenditure needs, climate goals,
human rights and gender equality commitments.
human rights and gender equality commitments.
Therefore @ugandadebtnet & other CSOs entreat you to support the cause for economic recovery of LICs including Uganda, through no-interest on new debts for 10 years commencing 2020; & total Debt cancellation of outstanding debt,by #G20 , @IMFLive, @WorldBank, regional banks,....
, @IMFLive, @WorldBank, regional banks,....
as well as bilateral creditors (e.g. under Paris Club). Then the LICs can invest the Debt cancellation resources into better healthcare, livelihood systems and other equitable economic development areas.
secondly, together with other CSOs, we seek your renewed support to ensure that Govts of LICs including Uganda rebuild domestic revenue bases, exercise greater public accountability and outcomes from debt-funded programs; towards equitable and sustainable development.
