IMF Warns of Economic Collapse in Poor Nations Unless G20 Extends Debt Relief And Forgiveness

Reuters: IMF: Poor nations could face 'economic collapse' unless G20 extends debt relief 

LONDON, Dec 2 (Reuters) - Poorer nations could be facing economic collapse unless the world's richest economies agree to step up debt relief efforts, International Monetary Fund (IMF) chief Kristalina Georgieva warned on Thursday. 

Some 60% of low income countries are already in or at high risk of debt distress, compared to less than half that in 2015, Georgieva wrote in a blog co-authored with Ceyla Pazarbasioglu, director at the IMF Strategy, Policy and Review Department. 

 "We may see economic collapse in some countries unless G20 creditors agree to accelerate debt restructurings and suspend debt service while the restructurings are being negotiated." 

Low income countries' debt to non-Paris Club members The G20 group of major economies launched the Debt Service Suspension Initiative (DSSI) in spring 2020, designed to offer a temporary freeze in payments to low-income countries, many of which had already faced hefty debt burdens pre-pandemic. 

However, that initiative is running out at the end of the year. Progress on another G20 plan, the Common Framework for Debt Treatments designed to reduce the overall debt burdens of poor countries, has been very slow. 

 Read more ....  

 WNU editor: The possibility that countries like China will extend debt relief or forgiveness is zero. 

As for the G20, the IMF is recommending massive increases in interest rates to combat inflation .... IMF urges the Fed to speed up monetary policy tightening amid mounting inflation fears (CNBC). 

IMF Warns of Economic Collapse in Poor Nations Unless G20 Extends Debt Relief And Forgiveness  

The G20 Common Framework for Debt Treatments Must Be Stepped Up -- IMF  

IMF Warns of Economic Collapse in Poor Nations Without Debt Fix -- Bloomberg

IMF warns of 'economic collapse' unless G20 extends debt relief -- IBTimes/AFP  

Rabobank: The IMF Warning Of "Economic Collapse" Should Get Headlines -- Zero Hedge

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