A growing number of countries are facing or may soon face staggering debt crises due to the coronavirus pandemic, warned the head of the UN’s highest economic body on Tuesday.
Mona Juul, Norway’s U.N. ambassador and president of the 54-nation Economic and Social Council, called for stronger measures to combat the devastating economic impact of the global health crisis, according to the Associated Press.
Member States in the 20 group, which includes the world̵
It will freeze an estimated $ 11 billion in debt for eligible countries, but governments eligible for the moratorium will still have another $ 20 billion in multilateral and commercial debt that will be paid this year. More needs to be done, Juul said during a meeting on funding for coronavirus recovery.
“Many countries will have to make difficult choices between serving their debts, fighting the pandemic and investing in recovery,” she said, the AP reported, even if the payment delay is extended for another year.
Amina J. Mohammed, the other commander of the U.N., said that the funding needed to close fiscal gaps must be tailored to individual countries.
When the industrial sectors cease screaming, the supply chains have collapsed and put state officials – who are already circling to meet health needs – under the additional burden of dealing with rising unemployment.
“By all measures, we are in a recession of outstanding proportions,” Mohammed said Tuesday. “Financing on an unprecedented scale is crucial to an effective response.”