SDR - New World Money

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>>> G-20 to Freeze Sovereign Debt Payments for Poor Countries: FT <<<


(Note - What will probably come out this is a swap of the dollar denominated debt of these countries for SDRs. The IMF has reportedly received many requests from emerging countries for a new issuance of SDRs, and the IMF says they are considering it. Last year the IMF apparently set up a 'substitution fund' mechanism by which central banks can swap their dollars for SDRs directly, without having to dump them on the market)



>>> G-20 to Freeze Sovereign Debt Payments for Poor Countries: FT


Bloomberg

By Matthew G Miller

April 12, 2020


https://www.bloomberg.com/news/articles/2020-04-12/g-20-to-freeze-sovereign-debt-payments-for-poor-countries-ft?srnd=premium


The G-20 is close to a deal to allow lower income countries to freeze their government debt repayments, the Financial Times reported. The deal would put a moratorium on payments for at least six to nine months, with the possibility of going through to 2021.

The move would be part of a plan to help the nations grapple with the coronavirus pandemic, and stave off an emerging markets debt crisis, according to a senior G-20 official the newspaper cited.

“What is immediately needed is to give these people space so they don’t need to worry about the cash flow and debt servicing going to other countries, and they can use that money for their immediate needs,” the senior official said, according to the FT.

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