European Central Bank officials are drawing up a scheme to cope with potentially hundreds of billions of euros of unpaid loans in the wake of the coronavirus outbreak, two people familiar with the matter told Reuters.
The president of Kyrgyzstan has pleaded, during a meeting jointly convened by the United Nations to discuss the impact of the COVID-19 pandemic on the global economy, for his country’s debt to be restructured to allow for more social spending.
Argentina will extend negotiations over a $65 billion debt restructuring proposal until May 22, the government said, setting the stage for tense last-ditch talks as the South American nation races to avoid default.
May 1 was an important day for the world's poorest nations. It was the day the rich club of G20 nations gave debtors a payment holiday until the end of the year, giving developing nations more headroom to pay for healthcare during the pandemic.
Italy's economically punishing coronavirus lockdown, combined with big-spend stimulus packages to support families and firms, will push public debt and deficit to dizzying heights, the government said.
Germany may be able to manage the fiscal impact of the coronavirus crisis without exceeding approved debt levels if the economy recovers in the second half of the year, Finance Minister Olaf Scholz said in an interview published on Sunday.
The International Monetary Fund said it would provide immediate debt relief to 25 member countries under its Catastrophe Containment and Relief Trust (CCRT) to allow them to focus more financial resources on fighting the coronavirus pandemic.
Pakistan has appealed to international stakeholders for urgent debt relief for developing countries so they can deal more effectively with the economic fallout from the coronavirus pandemic, the government said.
World Bank Group President David Malpass said he was confident of progress on his joint call with the International Monetary Fund for a temporary standstill in official bilateral debt payments by the world's poorest countries.
The European Central Bank signaled it’s ready to buy more debt of nations such as Italy to calm mounting financial panic, and pushed back against political criticism of President Christine Lagarde’s handling of the coronavirus crisis.
Negotiations to restructure Lebanon's foreign currency debt should not last more than nine months if well-intentioned, the economy minister told a local broadcaster, as the country headed for its first sovereign default.