Washington, D.C. - Today, the Institute of International Finance (IIF) issued the following statement from Tim Adams, President and CEO of the IIF, following the conclusion of the G20 Finance Ministers and Central Bank Governors Virtual Meeting:
“We are encouraged by the priority that the G20 has placed on debt servicing concerns in the poorest and least developed countries. The spread of COVID-19 has created an unprecedented healthcare and humanitarian crisis, making servicing and managing debt obligations close to impossible for vulnerable nations. As a crisis-fighting measure, the IIF has recommended that private creditors voluntarily grant IDA-eligible countries, upon request, debt payment forbearance for a fixed period of time – similar to what the official sector has announced today. By acting in conjunction with the official sector, private creditors would quickly help to free up funds for the urgent fiscal support needed to fight COVID-19.
“Going forward, we will continue to convene IIF members through our working groups and committees to solicit their views and recommendations on the best approaches to debt obligations in IDA-eligible countries. We intend to convey these views as appropriate to officials, policymakers and the general public, offering a deliberative and consultative process for arriving at consensus-based recommendations.”
The Institute of International Finance is the global association of the financial industry, with more than 450 members from more than 70 countries. Its mission is to support the financial industry in the prudent management of risks; to develop sound industry practices; and to advocate for regulatory, financial and economic policies that are in the broad interests of its members and foster global financial stability and sustainable economic growth. IIF members include commercial and investment banks, asset managers, insurance companies, sovereign wealth funds, hedge funds, central banks and development banks.