The DRGR report calls on the G20 calls on the G20 to move beyond the Common Framework for Debt Treatments and to require public and private creditors to provide a substantial debt cut to a broad set of low- and middle-income countries, in exchange for a commitment to a green and inclusive recovery.
The Financial Times reported about the Statement of 23 former Central Bank Governors and former Finance ministers in favour of Debt Relief for a Green and Inclusive Recovery.
Jonathan Wheatley reports in the FT Blog:
Former finance ministers and central bank governors have called on the G20 and the IMF to step up their support for poor countries battling the economic impacts of the coronavirus pandemic.
A group of 22* former officials from countries including Germany, India, Brazil, South Africa and Ireland have asked the G20 to launch an initiative to deliver bilateral, multilateral and private sector debt relief “on a grand scale analogous to the Highly Indebted Poor Countries Initiative”. (…)
The group called on the IMF to make a “substantial” allocation of its special drawing rights, a form of reserve asset that countries can sell for cash.
* The total number of signatories is now 23, one signature came in after the FT was informed about the initiative.
Statement on Debt Relief for a Green and Inclusive Recovery
The COVID-19 crisis is the biggest threat to human prosperity and a healthy planet in close to a century.
As the world confronts a new wave of the COVID-19 virus, the United Nations reports that many developing countries are forced to deploy 30-70 percent of government revenues to pay off international creditors rather than pursue these broader goals.
The World Bank estimates that upwards of 150 million people could be pushed into extreme poverty by 2021, with 8 out of 10 of these ‘new poor’ in middle income countries.
This is not the time for nation-states to be forced to trade their people and futures for international debt repayments that have ballooned for reasons largely out of their control, putting action on our shared climate change and sustainable development goals on hold.
It is the time to reset and restart our economies in a new direction with inclusivity, climate and development goals at the core of the recovery effort.
To that end, we the undersigned call on the G20 and world leaders to provide debt relief to emerging market and developing countries with unsustainable debt burdens so they can secure fiscal space to combat the virus, protect the vulnerable, and secure a green and inclusive recovery.
We also support a substantial new allocation of the International Monetary Fund’s Special Drawing Rights, accompanied by a significant increase in multilateral and regional development bank financing aided by an increase in those banks’ capital. These measures are necessary to finance health, social protections and climate transitions for emerging market and developing countries in need.
We therefore call on the G20 to enact a Debt Relief for a Green and Inclusive Recovery Initiative that requires bilateral, multilateral, and private sector debt relief on a grand scale analogous to the Highly Indebted Poor Countries Initiative.
A G20 emergency summit on a Green and Inclusive Recovery in response to the debt crisis is overdue. We urge the Italian G20 presidency to initiate such a summit as soon as the Biden administration has come into office.
An unprecedented crisis requires an unprecedented response. It is time for G20 leaders to advance comprehensive debt relief and new financing to secure sustainable development and climate goals.
Marion Williams – former Governor of the Central Bank of Barbados
Atiur Rahman – former Governor of the Bangladesh Bank
Salehuddin Ahmed – former Governor of the Bangladesh Bank
Luiz Carlos Bresser-Pereira – former Finance Minister of Brazil
Nelson Barbosa – former Finance Minister of Brazil
Roberto Zahler – former Governor of the Central Bank of Chile
Jose Antonio Ocampo – former Finance Minister of Colombia
Hans Eichel – former Finance Minister of Germany
Patrick Honohan – former Governor of the Central Bank of Ireland
Njuguna Ndung’u– former Governor of the Central Bank of Kenya
Andrew Mullei – former Governor of the Central Bank of Kenya
Y.V. Reddy – former Governor of the Reserve Bank of India
D. Subbarao – former Governor of the Reserve Bank of India
Rakesh Mohan – former Deputy Governor of the Reserve Bank of India
Fazeel Najeeb – former Governor of the Maldives Monetary Authority
Sanusi Lamido Sanusi – former Governor of the Central Bank of Nigeria
Shamshad Akhtar – former Finance Minister of Pakistan and State Bank of Pakistan Governor
Oscar Dancourt – former Governor of the Central Bank of Peru
Jean-Paul Adam – former Finance Minister of Seychelles
Momodu Kargbo – former Finance Minister and Governor of the Bank of Sierra Leone
Rob Davies – former Minister of Trade and Industry for South Africa
Chalongphob Sussangkarn – Former Finance Minister of Thailand
Louis Kasekende – former Deputy Governor of the Bank of Uganda
The COVID-19 crisis has come at the worst possible time for humanity. The poorest countries were already struggling to meet their development goals in the face of cyclones, wildfires, and droughts, and the world now has only a decade left to slow down increases in global temperature and sea levels before they become catastrophic, and invest in climate-resilient development.
Report, Videos and Slides of the Launch
On Monday, 16. November 2020, 2pm UTC, we launched the report “Debt Relief for a Green and Inclusive Recovery“. It puts forth an ambitious proposal for concerted and comprehensive debt relief on a global scale to support sustainable recoveries, economic resilience, and a just transition to a low-carbon economy.
Here you find key elements of the proposal and the launch:
Full Video Recording:
This is the transcript of Barbados Prime Minister Mia Mottley’s speech delivered at the launch of the report “Debt Relief for a Green and Inclusive Recovery“. The transcript is not official – please listen yourself at the recording.
Thank you for that very kind introduction, Stephany, and also for your invitation to participate in this important forum and to share my thoughts on a most timely topic. I trust that it will add to the discourse that is occurring globally, but more importantly, that you get an insight into the challenges faced by us in small island developing states.
Transcript of the video provided by Gordon Brown, United Nations Special Envoy for Global Education and former Prime Minister of the United Kingdom, for the launch of the report “Debt relief for a Green and Inclusive Recovery”
This conference today is of utmost importance, and in the month that we have found that we have an American president committed to net carbon zero by 2050 and a Chinese president committed to net carbon zero by 2060, this meeting is of great global significance as we fashion the new building blocks to take us there.
New report demands G20 to go beyond recent announcements and tackle the escalating debt, pandemic and climate crisis.
Public launch event on Monday, November 16, 2 PM GMT / 9 AM EST, with appearances from the Hon. Mia Amor Mottley, Prime Minister and Finance Minister of Barbados, and former UK Prime Minister Gordon Brown. Register to attend or Direct Livestream.
A report launched today calls on the G20 to move beyond the Common Framework for Debt Treatments announced last Friday and to require public and private creditors to provide a substantial debt cut to a broad set of low- and middle-income countries, in exchange for a commitment to use some of the newfound fiscal space for a green and inclusive recovery.
On Monday, 16. November 2020, 2pm UTC, we launch our first report. It puts forth an ambitious proposal for concerted and comprehensive debt relief on a global scale to support sustainable recoveries, economic resilience, and a just transition to a low-carbon economy.
The Special Session ‘Climate Action in Times of Debt Distress’ at the Third Annual Conference of the Global Research Alliance for Sustainable Finance and Investment, examined the options for debt rescheduling that will allow for people centred investments that address climate change and inequality by leaving fossil fuels in the ground. Several co-chairs of the initiative presented insights into the issue.