The Group of 20 leading economies this weekend may have to consider expanding help for the world’s poorest countries, three months after agreeing to provide temporary debt relief, as the coronavirus pandemic continues to ravage nations.
Central bankers and finance ministers from the G-20 will hold a virtual meeting on Saturday to discuss and coordinate phased efforts to spur a global economic recovery. Looking beyond just debt relief efforts would be part of that.
The Covid-19 pandemic is now spreading faster in the Americas and Africa compared to the previous meeting in April when the bulk of infections were in Asia and Europe. The rate of infections is increasing in many countries, with debt costs crowding out health and social expenses.
Unprecedented stimulus from the world’s largest central banks has helped most emerging economies regain access to international capital markets, but some smaller economies that don’t usually benefit from large-scale borrowing will still need help.
“The spotlight on debt is important but we shouldn’t focus on it to the exclusion of everything else,” Anna Gelpern, a law professor at Georgetown University, said at a conference on July 9. “The objective has got to be funding essential needs in response to a public health shock. How we get there is a second-order question.”
Since the G-20’s April agreement that aims to waive about $12 billion (Dh44bn) in bilateral debt payments from countries that are especially vulnerable to the pandemic, 41 of the 73 eligible nations have requested help. The Paris Club has waived $1.3bn in repayments and the International Monetary Fund (IMF) has made $100bn available in emergency financing for low-income and emerging-market countries.
However, charities including Oxfam said the relief so far to the world’s poorest nations is “woefully inadequate.”
Saturday’s discussions could touch on extending the debt pause beyond 2020 and adding middle-income countries, said Eric LeCompte of the Jubilee Debt Campaign, a group that advocates relief for poor countries.
Special drawing rights at the IMF may also again be brought up. A proposal to increase these reserve assets, which would boost the IMF’s lending power, was blocked by the US at the lender’s April meeting. However, China’s central bank governor on Thursday called on the IMF to use a new issue of SDRs to help developing countries.
In a letter to the G-20 finance ministers released on Friday, a group of economists including former US Treasury Secretary Larry Summers and Vera Songwe, executive secretary of the UN Economic Commission for Africa, urged the meeting to extend debt standstills and consider new SDR allocations. Summers is a contributor to Bloomberg News.
“It will take more than a suspension of debt service on existing bilateral claims for half a year to help the poorest countries fund the needed fiscal and health response,” said Brad Setser, senior fellow at the Council on Foreign Relations and a former economist at the US Treasury Department. “There needs to be more financial flows as well.”
Private creditors have so far swerved clear of efforts to halt payments on Eurobonds, with nations wary of triggering default clauses.
Another sticking point is China which has been slow to join the debt suspension initiative. The participation of the world’s second-largest economy is key for the debt-waiver push to work, World Bank president David Malpass said last week.
“Continuing lack of clarity on which Chinese creditors will participate, coupled with resistance from private-sector creditors to voluntary participation suggest that actual relief will be much less than originally planned,” Alicia Garcia Herrero, the chief economist for Asia-Pacific at Natixis SA, said in a note.
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Founder: Shamim Kassibawi
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Sector: Tech
Size: 20 employees
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Healthy tips to remember
Here, Dr Mohamed El Abiary, paediatric consultant at Al Zahra Hospital Dubai, shares some advice for parents whose children are fasting during the holy month of Ramadan:
Gradual fasting and golden points - For children under the age of 10, follow a step-by-step approach to fasting and don't push them beyond their limits. Start with a few hours fasting a day and increase it to a half fast and full fast when the child is ready. Every individual's ability varies as per the age and personal readiness. You could introduce a points system that awards the child and offers them encouragement when they make progress with the amount of hours they fast
Why fast? - Explain to your child why they are fasting. By shedding light on the importance of abstaining from food and drink, children may feel more encouraged to give it there all during the observance period. It is also a good opportunity to teach children about controlling urges, doing good for others and instilling healthy food habits
Sleep and suhoor - A child needs adequate sleep every night - at least eight hours. Make sure to set a routine early bedtime so he/she has sufficient time to wake up for suhoor, which is an essential meal at the beginning of the day
Good diet - Nutritious food is crucial to ensuring a healthy Ramadan for children. They must refrain from eating too much junk food as well as canned goods and snacks and drinks high in sugar. Foods that are rich in nutrients, vitamins and proteins, like fruits, fresh meats and vegetables, make for a good balanced diet
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Company Profile
Company name: NutriCal
Started: 2019
Founder: Soniya Ashar
Based: Dubai
Industry: Food Technology
Initial investment: Self-funded undisclosed amount
Future plan: Looking to raise fresh capital and expand in Saudi Arabia
Total Clients: Over 50
HOW DO SIM CARD SCAMS WORK?
Sim swap frauds are a form of identity theft.
They involve criminals conning mobile phone operators into issuing them with replacement Sim cards, often by claiming their phone has been lost or stolen
They use the victim's personal details - obtained through criminal methods - to convince such companies of their identity.
The criminal can then access any online service that requires security codes to be sent to a user's mobile phone, such as banking services.
How to increase your savings
- Have a plan for your savings.
- Decide on your emergency fund target and once that's achieved, assign your savings to another financial goal such as saving for a house or investing for retirement.
- Decide on a financial goal that is important to you and put your savings to work for you.
- It's important to have a purpose for your savings as it helps to keep you motivated to continue while also reducing the temptation to spend your savings.
- Carol Glynn, founder of Conscious Finance Coaching
Things Heard & Seen
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Starring: Amanda Seyfried, James Norton
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MEYDAN CARD
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The National selections:
6.30pm AF Alwajel
7.05pm Ekhtiyaar
7.40pm First View
8.15pm Benbatl
8.50pm Zakouski
9.25pm: Kimbear
10pm: Chasing Dreams
10.35pm: Good Fortune
How to report a beggar
Abu Dhabi – Call 999 or 8002626 (Aman Service)
Dubai – Call 800243
Sharjah – Call 065632222
Ras Al Khaimah - Call 072053372
Ajman – Call 067401616
Umm Al Quwain – Call 999
Fujairah - Call 092051100 or 092224411
What is cyberbullying?
Cyberbullying or online bullying could take many forms such as sending unkind or rude messages to someone, socially isolating people from groups, sharing embarrassing pictures of them, or spreading rumors about them.
Cyberbullying can take place on various platforms such as messages, on social media, on group chats, or games.
Parents should watch out for behavioural changes in their children.
When children are being bullied they they may be feel embarrassed and isolated, so parents should watch out for signs of signs of depression and anxiety
Zayed Sustainability Prize
