IMF warns of 'economic collapse' unless G20 extends debt relief

Tags

The IMF on Thursday urged advanced economies in the G20 to extend and improve their debt relief initiative, warning that many countries face a dire crisis without the help.

"We may see economic collapse in some countries unless G20 creditors agree to accelerate debt restructurings and suspend debt service while the restructurings are being negotiated," IMF chief Kristalina Georgieva said in a blog, adding that it is critical private creditors also offer relief.

The G20 Debt Service Suspension Initiative (DSSI) expires at the end of the year, and without a renewal, countries would face financial pressure and spending cuts just as new Covid-19 variants are spreading and interest rates are expected to rise, she said.