European Union development ministers on Monday discussed the issue of debt relief, investment and Sustainable Development Goals (SDGs), at a virtual meeting in the context of the COVID-19 global response and recovery effort.
Ministers took note of the fact that many countries facing unsustainable debt levels, including some middle-income countries that now face the risk of debt distress, suffer even more from the effects of the COVID-19 pandemic, said an EU statement released after the meeting.
“We need to avoid a situation where some countries in insolvency might trigger a full-fledged debt crisis, with even more devastating consequences for the global economy. Fast action is needed and the clock is ticking. Debt relief – well managed – is in the interest of every one of us,” said EU High Representative Josep Borrell who chaired the meeting.
The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, also participated in the discussions. She underlined the scale and nature of the debt build-up happening around the world, and the dangerous interaction between the impact of the pandemic and the economic damage it is inflicting.
