G20 agrees debt freeze for world’s poorest countries

G20 agrees debt freeze for world’s poorest countries

The debt standstill affects the world's poorest and least-developed countries, as defined by the World Bank and the United Nations, as long as they are current in their debt service payments to the World Bank and International Monetary Fund.. The Institute of International Finance, which represents 450 banks, hedge funds and other global financial firms, said it would recommend that private sector creditors voluntarily grant similar debt relief to the poorest countries, if they requested it.. A French finance ministry official on Tuesday said private creditors had agreed voluntarily to roll over or refinance $8 billion of the debt of the poorest countries, on top of $12 billion in debt payments to be suspended by countries.. The debt suspension will last until the end of the year but creditors will consider a possible extension during 2020, the G20 said.. Eric LeCompte, executive director at the not-for-profit Jubilee USA Network, estimated the agreement could result in $25 billion of relief for the poorest countries..