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6/11/2020 Statement of the G7 Finance Ministers on Debt Transparency and Sustainability | U.S. Department of the Treasury Statement of the G7 Finance Ministers on Debt Transparency and Sustainability June 3, 2020 WASHINGTON – We con nue to work together to advance the interna onal economic response to the COVID-19 pandemic, with a focus on the poorest and most vulnerable countries. COVID-19 has exacerbated exis ng debt vulnerabili es in many low-income countries, highligh ng the importance of debt sustainability and transparency to long-term financing for development. We welcome efforts of the interna onal financial ins tu ons (IFIs) to amplify their support for the most vulnerable countries. In this context, we are commi ed to implemen ng the Debt Service Suspension Ini a ve (DSSI) agreed by the G20 and the Paris Club, by suspending official bilateral debt payments for the poorest countries to year-end 2020 and possibly longer, providing those countries fiscal space to fund social, health, and other measures to respond to the pandemic. In line with the G20 and Paris Club DSSI agreements, we will implement the DSSI across our export credit agencies and other public lending agencies, and call on all official creditors to do so, too. Given the importance of private financing for sustainable development, we welcome leadership by the Ins tute of Interna onal Finance (IIF) in coordina ng private sector par cipa on, and look forward to follow-up. We look forward to mul lateral development banks providing further details on how they will support DSSI beneficiary countries. We welcome the focus on debt transparency in the DSSI, as essen al to debt sustainability and economic growth. We strongly support the commitment by DSSI beneficiary countries to strengthen debt repor ng, which facilitates be er-informed investment decisions, enhances public accountability, and supports long-term sustainable development. We welcome that the Interna onal Monetary Fund (IMF) and the World Bank Group will monitor creditor par cipa on, public debt disclosure, and use of addi onal fiscal space, and we look forward to public repor ng of these results. https://home.treasury.gov/news/press-releases/sm1023 1/2 6/11/2020 Statement of the G7 Finance Ministers on Debt Transparency and Sustainability | U.S. Department of the Treasury Beyond the DSSI, the IFIs have an important role to play in helping borrowing countries improve prac ces to promote debt transparency and sustainability, as outlined in the framework of the IMF and World Bank’s mul pronged approach for addressing emerging debt vulnerabili es. We call on the IFIs, borrowers, and creditors to work together on strengthening public repor ng of debt data used in debt sustainability analyses, including a breakout by external creditor and more thorough coverage of con ngent liabili es, state-owned enterprise debt, and collateralized financing. The IFIs can encourage and support borrowing countries’ efforts to enhance public debt disclosure, limit non-concessional borrowing when necessary, and reduce debt vulnerabili es. We also look to the IFIs to step up efforts to provide technical assistance to reduce public debt vulnerabili es, strengthen debt management capacity, and enhance debt repor ng prac ces. In this regard, we welcome renewed support for the World Bank and IMF’s Debt Management Facility III and the IMF’s Data for Decisions Fund. Creditors also bear responsibility for their lending decisions and must rise to the occasion. We strongly endorse the G20 Opera onal Guidelines for Sustainable Financing (the Guidelines) and call on all creditors to take lending decisions consistent with the borrower’s debt sustainability. Official creditors should implement these guidelines, drawing on best prac ces provided by the IMF and the World Bank. We urge creditors to disclose fully the terms of public debt in line with the Guidelines, while refraining from collateralized transac ons that use assets or revenues unrelated to projects. Creditors should also limit the use of confiden ality clauses, including for state-owned enterprises. We welcome the IIF’s Voluntary Principles for Debt Transparency and urge quick progress on crea ng a repository to host data on private sector loans to low-income countries. We remain commi ed to assis ng low-income countries in their responses to the COVID-19 pandemic. We will con nue to work with the G20, Paris Club partners, the IMF, the World Bank, and other creditors to secure debt sustainability and transparency, including promo ng mely creditor coordina on and fair burden sharing. #### https://home.treasury.gov/news/press-releases/sm1023 2/2