RIYADH, 9th July, 2020 (WAM) — The Saudi G20 Presidency and the Paris Forum concluded a high-level ministerial virtual conference, which discussed challenges around international capital flows volatility, as exacerbated in emerging market economies by the unprecedented COVID-19 crisis, and possible policy responses to help restore sustainable flows of capital and to mobilise robust financing for development.
The conference brought together Finance Ministers and Central Bank Governors, heads of International Financial Institutions, IFIs, chief executives of private financial institutions and prominent scholars.
In response to the unprecedented health and economic crisis presented by the COVID-19 pandemic, governments and central banks around the world have taken exceptional measures, including unprecedented fiscal, monetary and financial stability measures.
Additionally, the launch of the historic Debt Service Suspension Initiative, DSSI, could provide around $14 billion in immediate and critical liquidity relief by official bilateral creditors alone for the poorest nations in 2020, as estimated by the World Bank Group.
Speaking at the event, Mohammed Aljadaan, Saudi Minister of Finance, said, “In response to COVID-19 pandemic, G20 countries have implemented unprecedented fiscal, monetary and financial stability measures and ensured that international financial institutions can provide critical support to developing and low-income countries.”
”As the crisis remains unfolding, we will coordinate with G20 member countries to promote sustainable financing for developing countries, support the return of capital flows to emerging markets and developing countries, build resilience and promote more sustainable sources of financing.”
Bruno Le Maire, Minister of Economy and Finance of France, said, “An unprecedented crisis requires extraordinary decisions. The G20 and the Paris Club took a historic step to address the COVID-19 impact by launching the “Debt Service Suspension Initiative” to the benefit of the poorest countries, in particular in Africa.
”We need to continue working together to ensure its successful implementation. In the next steps, we also need the right tools to support countries suffering from capital outflows. We cannot let this crisis destroy years of efforts to attract investors and support growth.”