The main creditors will suspend the payment of the debt of the poorest countries – France

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PARIS – The main international creditors have agreed to suspend the payment of the debt of the poorest countries this year, throwing a financial lifeline to help them get through the coronavirus crisis, the French Minister of Finance said on Tuesday.

Some 76 countries, including 40 in sub-Saharan Africa, were eligible for suspension of payments totaling $ 20 billion, out of a total of $ 32 billion that countries had to spend on debt service this year. .

“We have obtained a debt moratorium on bilateral creditors and private creditors for a total of $ 20 billion,” Bruno Le Maire told reporters.

Government creditors, including not only the Paris Club but also China, must suspend $ 12 billion as part of the deal, which is due to be finalized on Wednesday.

Private creditors have voluntarily agreed to roll over or refinance $ 8 billion in debt, a source from the French finance ministry said.

Of the $ 32 billion owed this year, the remaining € 12 billion is owed by multilateral lenders, mainly the World Bank. The Mayor urged these lenders to join the initiative. (Leigh Thomas report, edited by Larry King)

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