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Ahead of G20, U.N. chief warns 'developing world on precipice of financial ruin'

Published 11/20/2020, 12:49 PM
Updated 11/20/2020, 07:25 PM
© Reuters. FILE PHOTO: United Nations Secretary-General Antonio Guterres during interview with Reuters at U.N. headquarters in New York

© Reuters. FILE PHOTO: United Nations Secretary-General Antonio Guterres during interview with Reuters at U.N. headquarters in New York

By Michelle Nichols

UNITED NATIONS (Reuters) - U.N. Secretary-General Antonio Guterres warned on Friday that "the developing world is on the precipice of financial ruin and escalating poverty, hunger and untold suffering" as the world struggles to combat the coronavirus pandemic.

His message came ahead of a meeting of the leaders of the Group of 20 rich nations and big emerging powers this weekend.

"We cannot let the COVID pandemic lead to a debt pandemic," Guterres told reporters.

He has been pushing the G20 to further extend and expand debt service suspension to help developing and middle-income economies recover from the pandemic and for the allocation of Special Drawing Rights (SDR) and a voluntary reallocation of existing Special Drawing Rights.

In excerpts of a draft G20 communique on Friday, leaders note that the coronavirus crisis had hit the most vulnerable in society the hardest, and said some countries may need debt relief beyond a temporary freeze in official debt payments that ends in June 2021.

"I am pushing for a further extension through the end of 2021 and, critically, to expand the scope of these initiatives to all developing and middle-income countries in need," Guterres said.

A final statement will be released by leaders from the United States, China and other Group of 20 nations after they meet by video conference on Saturday.

"We face epic policy tests. But ultimately, there is a moral test. The trillions of dollars needed for COVID recovery is money that we are borrowing from future generations. Every last penny," Guterres said.

© Reuters. United Nations Secretary-General Guterres speaks during a news conference at U.N. headquarters in New York City, New York

"We cannot use those resources to lock in policies that burden them with a mountain of debt on a broken and dangerous planet," he said.

Latest comments

SPENDING ain't the answer. Try Re-design of most national economies to emulate "Green New Deal". Contemplate it . tic tok.
Do we have proof of suicide and poverty or is this all he said she said?...
I hope the G20 can come thru with more grants to the poor countries. we just changed the government in Belize, so the new guy needs a whack of monies to buy all new Toyotas for the cabinet and administration CEOs.
Noted you just changed the USA President. Which President is next?
Biden's tax increases will be the final push sending us over the edge.
The United states of Zimbabwe! We the people
Maybe the central banks should stop devaluing every currency on the planet. The poor get poorer and the whole system crumbles.
Big boys and rich countries do not need you attention sir you take care likes of Kashmiris and Palstenions do you remember how long they are suffering fore more then your age sir but you do not care thay are not your people or country do not have relegion or country like yours sir
That is the "blessing" of unfettered capitalism.
USA is also one of these countryes
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