African finance ministers have called on the G20 countries to suspend debt repayment for low- and middle-income countries.
The call was made in a communique issued on late Tuesday, following the 53rd session of the Conference of African Ministers of Finance under the auspices of the United Nations Economic Commission for Africa.
The ministers said in their communique that they were also mindful of the increased importance of private creditors in Africa’s financing landscape, now accounting for 40% of the continent’s total debt, compared to a bilateral debt exposure of 27.6%.
Addressing Africa’s debt and future financing needs will be incomplete without taking into account Africa’s exposure to private creditors, they added.
Already, the Debt Service Suspension Initiative has postponed an estimated $5.1 billion in debt service payments by eligible African countries, providing much needed liquidity to save lives and rebuild livelihoods affected by the coronavirus pandemic. The African Development Bank and the World Bank have also committed $13 billion and $50 billion, respectively, to support Africa.
Similarly, the IMF has committed $25.6 billion to Africa through the Rapid Credit Facility, the Rapid Financing Instrument and the Extended Credit Facility.