TOKYO: Finance ministers and central bank chiefs of the Group of 20 advanced and emerging economies in a videoconference Friday agreed on additional relief measures for external debts owed by developing countries.

The online meeting was also attended by Japan’s Finance Minister ASO Taro  and Bank of Japan Governor Haruhiko Kuroda. 

Amid the novel coronavirus pandemic, the G-20 members have been working on extending debt repayment deadlines for developing countries that are financially vulnerable.

With the virus crisis resurging globally, the G-20 countries agreed to partially or fully exempt debtor nations from repayments of principal and interest payments on debts they owe to the private sector, as well as to the public sector.

“This is a historic agreement,” Aso told a press conference after the meeting. The biggest achievement is that the agreement includes government-affiliated financial institutions, Aso said, noting that China has so far refused to disclose data on loans at such lenders based on its claim that they are private-sector bodies.

The agreement called on debtor countries to open information on their debts to ensure transparency.

All public- and private-sector creditors were asked to join the debt relief measures “to ensure fair burden sharing.”

All parties concerned need to definitely implement the measures to increase their effectiveness, Aso said.

In their previous session in October, the G-20 financial chiefs decided to extend the debt repayment deadlines by six months from the end of this year.

JIJI Press