The G-20 is close to a deal to allow poor countries to freeze their government debt repayments, the Financial Times reported.
The deal would put a moratorium on payments for at least six to nine months, with the possibility of going through to 2021.
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The move would be part of a plan to help the nations grapple with the coronavirus pandemic, and stave off an emerging markets debt crisis, according to a senior G-20 official the newspaper cited. The proposal is, however, short of the debt cancellation being pushed by a group led by former British PM Gordon Brown.
“What is immediately needed is to give these people space so they don’t need to worry about the cash flow and debt servicing going to other countries, and they can use that money for their immediate needs,” the senior official said, according to the FT.
