By 2 Min ReadFILE PHOTO: George Washington is seen on one-dollar banknotes with a printed medical mask in this illustration taken on March 31, 2020. Illustration by REUTERS/Dado Ruvic (Reuters) – WASHINGTON (Reuters) – The US asked China and the business sector on Tuesday to enhance their participation in a G20 debt moratorium and an unified framework for debt restructuring for low-income nations hit hard by the COVID-19 pandemic. A senior US Treasury official said the US was open to broadening the G20 and Paris Club’s shared framework for debt management beyond low-income countries to include small island states, fragile governments, and even some lower-middle-income countries with significant debt burdens. G20 finance officials will meet in Venice on July 9-10 to discuss progress on the debt issue, amid mounting concern about a possible debt catastrophe. Kristalina Georgieva, the president of the International Monetary Fund, has frequently warned of a “dangerous disparity” in pandemic response and economic prospects that could leave developing countries years behind. Some Chinese firms had not completely participated in the G20 Debt Service Suspension Initiative, or debt freeze, and Washington was encouraging Beijing to do so, as well as offer additional data to other creditors. The person added that progress had been made in Chad’s case, which was the first to go through the debt restructuring process, and that Washington was pressing all creditors, public and private, to do their share quickly to assure Chad’s return to a sustainable growth path. According to the source, Washington would continue to push G20 countries to provide fiscal stimulus to help the global economy recover, as well as make transformative investments to address climate change and economic inequality. Andrea Shalal contributed reporting./n
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