NEW YORK: UN Secretary-General Antonio Guterres has reinforced calls for debt moratorium to help developing countries combat coronavirus pandemic that has had a devastating effect on their economies.
“The debt moratorium must be extended to all developing countries that are unable to service their debt, including several middle-income countries…followed by targeted debt relief…to prevent defaults leading to prolonged financial and economic crises”, he told a virtual news conference on Thursday. “The International Labour Organization (ILO) reported this week that the global workforce will be hit with the equivalent of the loss of more than 300 million jobs”, the UN chief said, adding that millions of children risk missing life-saving vaccines and that those officially living in poverty could rise by around 500 million “the first increase in three decades”.
Underscoring the “massive and urgent support” needed for developing countries, he echoed his call for a worldwide relief package of at least 10 per cent of the global economy’s output.
He acknowledged steps taken by the International Monetary Fund (IMF) – $12.3 billion in emergency financing; the World Bank, with $160 billion of extra financing; and the G20 leading economies, which have agreed to suspend debt service payments for the poorest countries, but added, “even this is not enough”.
Guterres maintained that a smart recovery from COVID-19 would help steer the world onto a “safer, healthier, more sustainable and inclusive path”, but that it was “critical to address the fragilities”. The Secretary-General called on Governments to ensure that revitalized spending “accelerate the decarbonization of all aspects of our economy and privilege the creation of green jobs”.
He also stressed that taxpayers’ money not be used to subsidize fossil fuels or bail out carbon-intensive industries; a price should be placed on carbon; and public funds be invested in a future where financial institutions and investors take climate risks fully into account.–Agencies
