The G20 Finance Ministers and Central Bank Governors held a virtual meeting on COVID-19

The G20 Finance Ministers and Central Bank Governors held a virtual meeting on COVID-19

G20 urgent collective priority is to overcome the COVID-19 pandemic and its intertwined health, social and economic impacts. To spare no effort, both individually and collectively, to protect lives, bring the pandemic under control, safeguard people’s jobs and incomes, support the global economy during and after this phase and ensure the resilience of the financial
system.

“We have taken immediate and exceptional measures, domestically and internationally, to address the COVID-19 pandemic and its impacts, including by implementing unprecedented fiscal, monetary and financial stability actions and ensuring that the International Financial Institutions (IFIs) can provide critical support to developing and low-income countries.”

G20 Finance Ministers and Central Bank Governors committed to use all available policy tools to support the global economy, boost confidence, maintain financial stability and prevent deep and prolonged economic effects. As mandated by the extraordinary G20 Leaders’ Summit, they endorsed the G20 Action Plan in response to the COVID-19 pandemic, which sets out the key principles guiding the response, and commitments to specific actions to drive forward international economic cooperation while navigating this crisis and looking ahead to a robust, sustained and inclusive global economic recovery.

“We welcome the important steps already taken by the International Monetary Fund (IMF), the World Bank Group (WBG) and other IFIs to help countries in need, using all instruments to the fullest extent possible as part of a coordinated global response. We support the further adoption and swift implementation of a strong financial response to help countries in need and to uphold global financial stability and resilience.”

The G20 financial response includes:

  • Delivering a comprehensive IMF support package;
  • Implementing urgently the support proposed by the WBG and multilateral development banks amounting to more than USD 200 billion;
  • Addressing debt vulnerabilities in low-income countries due to the pandemic;
  • Enhancing coordination among international organizations to maximize their impact and optimize the use of resources.

“We support a time-bound suspension of debt service payments for the poorest countries that request forbearance. We agreed on a coordinated approach with a common term sheet providing the key features for this debt service suspension initiative, which is also agreed by the Paris Club.”

During the meeting, G20 also welcomed the IMF’s rapid and enhanced deployment of access to emergency financing, including a temporary doubling of the annual access limit under the Rapid Credit Facility (RCF) and the Rapid Financing Instrument (RFI).

“We have taken immediate and exceptional measures to support global financial stability and resilience, including the deployment and expansion of bilateral swap lines and the introduction of repo facilities by central banks in line with their mandates. We also have taken regulatory and supervisory measures to ensure that the financial system continues to support the economy. “

The Action Plan endorsed by G20 will be reviewed regularly as the impact of the COVID-19 pandemic unfolds.

Original source: G20
Published on 15 April 2020