World Bank: The G20 may agree to extend its initiative to suspend debt payments

[Mary B]

World Bank: The G20 may agree to extend its initiative to suspend debt payments

Economie

2020-10-12 | 12:29

 

 

 

 

 

1,428 Views

 

 

World Bank President David Malpass said on Monday that some G20 creditor countries are against expanding and extending exemptions for poorer countries from debt service payments linked to Corona for another year.

He added, "Therefore, a compromise solution to an extension of only six months may emerge this week."

Malpass said that the debt working groups emanating from the Group of Twenty did not reach an agreement on the efforts of the two financial institutions to extend the group's initiative to suspend debt service for a year.

He added, "I think that there may be a compromise formula ... Maybe a six-month extension that can be renewed depending on the debt's sustainability

https://www.alsumaria.tv/news/اقتصاد/361183/البنك-الدولي-مجموعة-العشرين-قد-توافق-على-تمديد-مبا?src=rss&utm_campaign=rss&utm_source=Rss-articles&utm_term=Rss&utm_medium=Rss-361183

[Mary B]

The G20 considers measures to support a rapid and sustainable economic recovery

 

Economy News _ Baghdad The official Saudi Press Agency reported early Tuesday that G20 finance ministers and central bank governors will hold a virtual meeting on Wednesday under the Saudi presidency to discuss how to support a rapid and sustainable global economic recovery. The meeting will also discuss updates to the G20 action plan to support the global economy during the Coronavirus pandemic and the progress made in the G20 initiative to suspend debt service payments and a proposal to extend it until 2021.

Number of observations 56   Date of addendum 10/13/2020 https://economy-news.net/content.php?id=22227

[Mary B]

The dollar is rising and the yuan is falling, after China watches the currency's rise

 

Economy News _ Baghdad The dollar rose from its lowest level in three weeks on Tuesday, as dealers in the market returned to buying it, especially against the counterpart currencies with higher risks, after it appeared that the Chinese authorities were seeking to curb the gains in the yuan recorded recently. The Australian dollar lost about half a percent, as it received an additional blow from media reports that the notoriety stopped importing coal from the country as relations deteriorated between them. But risk appetite in general is supported by the hope that former Vice President Joe Biden will beat President Donald Trump in the US presidential election on November 3 and pay a major stimulus to support the economy that has hit the coronavirus pandemic. The dollar index rose 0.1 percent to 93.190, in an effort to extend its recovery from its lowest level in nearly three weeks at 92.997 reached on Friday, while the euro fell 0.17 percent to $ 1.1794. The Chinese yuan fell 0.1 percent to 6.7500 per dollar after the central bank identified a weaker-than-expected midpoint, erasing the impact of any support from strong Chinese trade data. The Mexican peso fell 0.4 percent to 21.270 per dollar, while the Canadian dollar fell 0.1 percent to 1.3124 per dollar. Biden's election victory is seen as a negative for the dollar as well, in part because of his pledge to increase corporate taxes, which would reduce investment returns in the United States and put pressure on the dollar even against safe-haven currencies like the yen and the Swiss franc. The yen registered a limited move at 105.43 per dollar, while the Swiss franc traded at 0.9102 per dollar, near its highest level in three weeks. The pound traded above the important level of $ 1.30, as hopes for a deal to leave Britain from the European Union outweighed concerns about pressures on the economy due to new restrictions to combat the Corona virus announced by Prime Minister Boris Johnson. The sterling settled near its strongest level in two weeks against the euro, which traded at 0.9043 pounds. On the other hand, the Australian dollar fell 0.6 percent to $ 0.7165, undermined by media reports that China has stopped receiving shipments of Australian coal.

Number of observations 17   Date of addendum 10/13/2020 https://economy-news.net/content.php?id=22231

[Mary B]

Oil prices rise after losses due to the return of supplies

 

Economy News _ Baghdad Oil prices rose on Tuesday, after suffering losses of nearly three percent in the previous session, with the resumption of supplies in Norway and the Gulf of Mexico in the United States and Libya, while the International Energy Agency expected a decrease in global energy demand by five percent this year. US West Texas Intermediate crude futures rose four cents to $ 39.47 a barrel, and Brent crude futures rose four cents as well, to $ 41.76 a barrel. Oil prices are under pressure due to fears of a return of supplies, while the increase in Covid-19 cases in the American Midwest and Europe raises concerns about the growth in fuel demand, which represents a challenge to OPEC and its allies in what is known as OPEC +. With the return of workers to the drilling rigs in the Gulf of Mexico in the United States after Hurricane Delta, as well as the return of workers in Norway to the drilling rigs after ending a strike, all eyes are on Libya, a member of OPEC, after the status of force majeure in the El Sharara field was lifted. On Monday, Libya's total production reached 355,000 barrels per day. The field was producing 300 thousand barrels per day before the blockade that was imposed on it. OPEC + cut supplies to support prices amid the Corona pandemic and cut supplies by 7.7 million barrels per day until December. The group's market watch committee meets next Monday.

Number of Observations 0   Date of Addition 10/13/2020 https://economy-news.net/content.php?id=22234

[Mary B]

International Energy Agency: Global energy demand is expected to decrease by 5% in 2020

 

Arab and international

Economy News _ Baghdad The International Energy Agency said Tuesday in its annual report on the Global Energy Outlook that the world's response to Covid-19 could "reshape the energy future" for years to come. The IEA report emphasized that most important of all is how the crisis will ultimately affect the transition to clean energy. The report notes that while the shift to clean energy continues to gain momentum, faster and bolder structural changes are needed if the world is to reach net zero carbon emissions. "The Covid-19 crisis has caused more disruption than any other event in recent history, and left scars that will last for years to come," the Paris-based agency said in a statement. "Covid-19 unleashed an exceptionally fierce crisis on countries around the world ... the crisis is still unfolding today - and its consequences for the world's energy future remain highly uncertain." Going forward, the International Energy Agency believes that renewables will play "major roles", and that solar energy will take center stage, driven by supportive government policies and reduced costs. "I see solar energy becoming the new king of electricity markets in the world," said Fatih Birol, Executive Director of the International Energy Agency. "Based on current policy settings, it is on track to set new records for posting every year after 2022." On the other hand, the International Energy Agency predicts that coal demand will not return to pre-coronavirus levels, and that it will account for less than 20% of energy consumption by 2040 for the first time since the Industrial Revolution. The agency said that oil will remain "vulnerable to major economic uncertainties resulting from the epidemic," as demand begins to decline after 2030. Given the continuing impacts of Covid-19, the International Energy Agency expects global energy demand to decline by 5% in 2020, with oil and coal consumption falling by 8% and 7% respectively.

Number of observations 64   Date of addendum 10/13/2020 https://economy-news.net/content.php?id=22226

[Mary B]

Tuesday, October 13, 2020 10:33 AM

 

The G20 seeks to extend the suspension of debt payments to help countries confront Corona

FacebookTwitterEmailWhatsApp

 

 

The President of the World Bank, David Malpass, said yesterday, Monday, that the G20 may extend the suspension of the payment of debts to the poorest countries for a period of only 6 months, as part of measures to help these countries to reduce the effects of the emerging corona virus (Covid 19). 

On Wednesday, the finance ministers and central bank governors of the G20 countries will hold a meeting chaired by the Kingdom of Saudi Arabia for the group, to discuss developments, global economic prospects, negative risks and possible policy measures with a view to avoiding them and supporting a rapid and sustainable global economic recovery.
The G20 summit had pledged in April to suspend the payment of debt servicing by the poorest countries until the end of the year due to a severe economic downturn witnessed against the backdrop of the outbreak of the Corona virus.
But Malpass said that the response to the decision to suspend debt paymentsIt was below expectations that not all creditors were fully involved, and the debts that were suspended were limited to 5 billion dollars only, knowing that it was expected to suspend payments between 8 billion and 11 billion dollars.
The recovery from Corona at the table of the Group of Twenty and the Monetary Fund and

said that although the pandemic continues strongly, but it is unlikely that the suspension of debt payments will be extended for another year.
In a statement to reporters, he suggested that "the language of the settlement will likely prevail over an extension of six months, which can be renewed based on the ability to bear the debt."
Finance ministers and central bank governors will address the group’s financial sector issues under the sector’s priority issues for 2020 represented in “structuring supervisory and regulatory issues to keep pace with the digital age”.
The progress made within the comprehensive framework of the Group of Twenty and the Organization for Economic Cooperation and Development on tax base erosion and profit shifting will also be examined in the context of addressing tax challenges resulting from the digitization of the economy and future steps.

And on Monday, the World Bank said that the debts of the seventy-three poorest countries recorded a growth of 9.5 percent last year and rose to a record level of $ 744 billion, considering that this shows the existence of "an urgent necessity for the cooperation of creditors and borrowers alike to ward off the growing risk." Sovereign debt crises due to the COVID-19 pandemic.

Last year, the debt burden of the majority of creditor countries that are part of the Group of Twenty reached $ 178 billion, according to the report, which was published in conjunction with the start of the bank’s annual meetings with the International Monetary Fund.

https://www.thebaghdadpost.com/ar/Story/202731/مجموعة-العشرين-تتجه-لتمديد-تعليق-سداد-الديون-لمساعدة-الدول-في-مواجهة-كورونا

[Mary B]

The suspension of debt service payments is high on the agenda at the G20 Central Governors' meeting Wednesday

London

The New Arab

October 13, 2020

Picture

The G20 seeks to mitigate the repercussions of Corona on the global economy (Sergey Karbukhin / AFP)

The finance ministers and central bank governors of the G20 countries will meet tomorrow, Wednesday, to discuss developments, global economic prospects and negative risks to the global economy.

The current session of the group's meetings, to be held in a virtual meeting, will discuss updates on the agglomeration's action plan, to support the global economy during the Coronavirus pandemic and the progress made in the G20 initiative to suspend debt service payments and propose an extension until 2021.

 

On April 15, the finance ministers and central bank governors approved the G20 action plan, which stipulates the basic principles that guide the group’s response and commitments towards taking specific measures to advance international economic cooperation with the aim of getting out of the crisis.

At the meeting hosted by Saudi Arabia, finance ministers and central bank governors will assess the progress of the group’s initiative to suspend debt service payments, in which the total deferred debt may exceed $ 14 billion. 

The postponement initiative aimed to enable borrowing countries to redirect their resources to combat the pandemic, and they will also discuss the option to extend the initiative to suspend debt service payments to 2021, to provide additional support to eligible countries.

 

Last August, the US Treasury said that finance ministers from the Group of Seven industrialized nations agreed to consider additional options, including extending the G20 debt freeze initiative for poor countries until 2021. Given the economic impact of the Coronavirus epidemic. 46 of the countries entitled to the initiative applied to benefit from it, most of which came from African countries, with a total of 30 countries.

Finance ministers and central bank governors will also address the financial sector issues of the G20 under the priority sector issues for 2020 represented in structuring supervisory and regulatory issues to keep pace with the digital age.

The G20 was established in 1999 with the aim of activating cooperation to confront global crises. Its countries comprise two-thirds of the world's population, while they represent 90% of the global gross product.

The group includes: the United States, Turkey, Canada, Mexico, Brazil, Argentina, France, Britain, Germany, Italy, South Africa, Saudi Arabia, Russia, China, Japan, South Korea, India, Indonesia, Australia and the European Union.

https://www.alaraby.co.uk/economy/تعليق-مدفوعات-خدمة-الديون-على-رأس-أجندة-اجتماع-"العشرين"-الأربعاء