Pay Later: G20 Extends Debt Relief for Developing Countries

Some critics have also complained that China objected to portions of the G20's debt relief plans that have been advanced.

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“It is unfortunate that the pressing need for broader debt relief for poor countries is being stymied by the apparent recalcitrance of China, which has become a major creditor,” said Eswar Prasad, an Economics Professor at Cornell University and a former Head of the IMF’s China Division.

“China has proven a reluctant participant in multilateral debt relief efforts, putting its narrow economic and geopolitical interests ahead of a collective approach to easing the burden on poor countries.”

“We still need to do more," Mohammed al-Jadaan, the Finance Minister for Saudi Arabia, this year’s Chair of the G20, acknowledged at a news conference after Wednesday's meeting.

"We must ensure these nations are fully supported in their efforts to tackle the Covid-19 pandemic... We have agreed to extend the debt service suspension initiative by six months.”

Al-Jadaan said there will be further discussions at April’s spring meetings to decide whether the suspension should be extended for an additional six months.

He stressed that the coronavirus pandemic has threatened the fiscal stability of many countries, particularly the poorest.

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Al-Jadaan said that another finance ministers’ meeting will be held virtually next month, before the leaders’ summit on November 21-22.