G-20 studies plan for moratorium on debts of poor and emerging countries.

247 - The G-20, a group that brings together the world's leading economies, is preparing an agreement to allow the poorest countries to have their public debts frozen, according to a newspaper report. Financial TimesThe agreement would enable a moratorium that could last from six to nine months, potentially extending until 2021. The moratorium would help minimize the effects of the new coronavirus pandemic and reduce the risks of a debt crisis in emerging market economies. 

"What is immediately needed is to give these people space so that they don't have to worry about cash flow and debt servicing going to other countries, and they can use that money for their immediate needs," a senior G-20 official reportedly said, according to the Financial Times. 

At the end of March, the G-20 had already announced that it would develop a plan aimed at strengthening the economies of emerging markets and protecting the poorest countries. 

The initiative would alleviate the lack of liquidity in emerging markets, which by the end of last month had already recorded an outflow of US$83 billion.