Finance
China to Join Other G20 Members on African Debt Relief
- China to Join Other G20 Members on African Debt Relief
China on Monday said it will join other G20 members to study how best it can offer African nations debt relief during this period.
The Chinese Ministry of Foreign Affairs made the statement on Monday.
African finance ministers have approached global lenders for debt relief in a move to create enough fiscal buffer for African nations as they grapple with the negative effect of the COVID-19.
The ministers said the continent needs at least $100 billion to protect 30 million jobs and stimulate key sectors as coronavirus grounded business operations from the aviation sector to manufacturing companies that can no longer access supplies due to supply chain disruption.
In a report released by the World Bank, the lender said debt relief would help African nations better manage the negative impact of COVID-19 given that the region spent about $35 billion on debt servicing in 2018 and another $9.7 billion on sovereign debts. Meaning, debt relief would provide about $45 billion out of the $100 billion the continent needs to manage the negative impact of COVID-19.