(WORLDWIDE) G20 Debt Treatment Report: With the debt service suspension initiative expiring and interest rates poised to rise, low-income countries will find it increasingly difficult to service their debts #AceNewsDesk report

#AceNewsReport – Dec.06: Despite significant relief measures brought on by the #COVI19 crisis, about 60 percent of low-income countries are at high risk or already in debt distress. In 2015 that number was below 30 percent…..

#AceDailyNews says that #COVID19’s Toll leads to the #G20 Common Framework for Debt Treatments Must Be Stepped Up‘ With policy space tightening for highly indebted countries, the framework can and must deliver more quickly: – 2021 – 12-02T09:17:06-05:00: By Kristalina Georgieva & Ceyla Pazarbasioglu

For many of these countries, the challenges are mounting. New variants are causing further disruptions to economic activity. COVID-related initiatives such as the G20 Debt Service Suspension Initiative (DSSI) are ending. Many countries face arrears or a reduction in priority expenditures. We may see economic collapse in some countries unless G20 creditors agree to accelerate debt restructurings and suspend debt service while the restructurings are being negotiated. It is also critical that private sector creditors implement debt relief on comparable terms.

2022: a more challenging debt outlook

Recent experiences of Chad, Ethiopia, and Zambia show that the Common Framework for debt treatments beyond the DSSI must be improved. Quick action is needed to build confidence in the framework and provide a road map for helping other countries facing increasing debt vulnerabilities.

Since the start of the pandemic, low-income countries have benefited from some attenuating measures. Domestic policies, together with low interest rates in advanced economies mitigated the financial impact of the crisis on their economies. The G20 put in place the DSSI to temporarily pause official debt payments to the poorest countries, followed by the Common Framework to help these countries restructure their debt and deal with insolvency and protracted liquidity problems. The international community also scaled-up its financial support, including record IMF emergency lending and a $650 billion allocation of special drawing rights, or SDRs—$21 billion of which was allocated directly to low-income countries. The G20 leaders committed to support low-income countries with onlending $100 billion of their SDRs to significantly magnify this impact.

No doubt 2022 will be much more challenging with the tightening of international financial conditions on the horizon. The DSSI will expire at the end of this year forcing participating countries to resume debt service payments. Countries will need to transition to strong programs, and for low-income countries that need comprehensive debt treatment, the Common Framework will be critical to unlock IMF financing.

But the Common Framework is yet to deliver on its promise. This requires prompt action.

Implementation so far has been slow

The Common Framework is intended to deal with insolvency and protracted liquidity problems, along with the implementation of an IMF-supported reform program. G20 official creditors—both traditional “Paris Club” creditors, such as France and the United States, and new creditors, such as China and India, which, as shown in the chart below, overtook the Paris Club as lenders in the last decade—agreed to coordinate to provide debt relief consistent with the debtor’s capacity to pay and maintain essential spending needs. The Common Framework requires private creditors to participate on comparable terms to overcome collective action challenges and ensure fair burden sharing.

But so far, only three countries—Chad, Ethiopia, and Zambia—have made requests for debt relief under the Common Framework. And each case has experienced significant delays.

In part, these delays reflect the problems that motivated the creation of the Common Framework in the first place. These include coordinating Paris Club and other creditors, as well as multiple government institutions and agencies within creditor countries, which can slow down decisions. The Common Framework aims to mitigate these problems but does not eliminate them. New creditors, including relevant domestic institutions, need to gain comfort with restructuring processes that would allow all creditors to work together in providing relief and enable the IMF to lend to countries facing debt difficulties. This takes time.

But there were also delays for reasons that have nothing to do with the Common Framework. To restore debt sustainability, Chad must restructure a large, collateralized obligation held by a private company, which is partly syndicated to a large number of banks and funds. This complicates the decision-making process. Domestic challenges slowed progress in Ethiopia and Zambia.

No time to waste

With policy space tightening for highly indebted countries, the framework can and must deliver more quickly.

First, greater clarity on the different steps and timelines in the Common Framework process is vital. Alongside earlier engagement of official creditors with the debtor and with private creditors, this would help accelerate decision making.

Second, a comprehensive and sustained debt service payment standstill for the duration of the negotiation would provide relief to the debtor at a time when it is under stress, as well as incentivize faster procedures to get to the actual debt restructuring.

Third, the Common Framework should clarify further how the comparability of treatment will be effectively enforced, including as needed through implementation of the IMF arrears policies, so as to give greater comfort to creditors and debtors.

Last but not least, the Common Framework should be expanded to other highly-indebted countries that can benefit from creditor coordination. Timely and orderly debt resolution is in the interest of both debtors and creditors.

Ensuring a success in the early cases will not only benefit the countries, but foster confidence in the Common Framework. In that regard, finalizing Chad’s restructuring quickly can serve as an essential precedent for other countries. In Ethiopia, the creditor committee should continue the technical work that will allow early provision of debt relief assurances once the situation stabilizes. In Zambia, G20 creditors should expeditiously form a committee of official creditors and begin engaging with the authorities and private creditors on debt relief, while also providing a temporary debt-service suspension for the duration of the debt-restructuring discussions. Otherwise, the country would be confronted with the impossible choice of cutting priority expenditures or piling up arrears.

Debt challenges are pressing and the need for action is urgent. The recent Omicron variant is a stark reminder that the pandemic will be with us for a while. Determined multilateral action is needed now to address vaccine inequality globally and also to support timely and orderly debt resolution. For its part, the IMF is ready to work with the World Bank and all our partners to help ensure the framework delivers for the people it was put in place to help.

#AceNewsDesk report ………….Published: Dec.06: 2021:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#imf, #worldwide

(ROME) #G20 REPORT: According to the final communique, the Group of 20 leaders also agreed to end public financing for coal-fired power generation abroad, but set no target for phasing out coal domestically — a clear nod to top carbon polluters China and India #AceNewsDesk report

#AceNewsReport – Nov.01: The Group of 20 countries, which represent more than three-quarters of the world’s greenhouse gas emissions, had been looking for common ground and solid commitments on how to reduce emissions while helping poor countries deal with the impact of rising temperatures.

#AceDailyNews says according to CBS News Report: #G20 countries make commitments on climate neutrality as summit comes to a close but set no target date for phasing out coal-fired power generation as Leaders of the world’s biggest economies made a compromise commitment Sunday to reach carbon neutrality “by or around mid-century” as they wrapped up a two-day summit that was laying the groundwork for the U.N. climate conference in Glasgow, Scotland…..

October 31, 2021 / 9:12 AM

Without them, momentum could be lost for the larger annual talks in Glasgow that officially opened Sunday and where countries from around the globe will be represented, including poor ones most vulnerable to rising seas, desertification and other effects.

Italian Premier Mario Draghi told the leaders going into the final working session Sunday that they needed both to set long-term goals and make short-term changes to reach them.

“We must accelerate the phasing-out of coal and invest more in renewable energy,” he said. “We also need to make sure that we use available resources wisely, which means that we should become able to adapt our technologies and also our lifestyles to this new world.”

According to the communique, the G20 reaffirmed past commitments by rich countries to mobilize $100 billion annually to help poorer countries cope with climate change, and committed to scaling up financing for helping them adapt.

The sticking point remained the deadline to reach carbon neutrality or “net zero” emissions, meaning a balance between greenhouse gases added to and removed from the atmosphere. Going into the summit Italy had all-but conceded it would only be able to secure commitments to reach net-zero emissions “by mid-century,” rather than a specific year.

According to the final communique, the G20 leaders said they will “accelerate our actions across mitigation, adaptation and finance, acknowledging the key relevance of achieving global net zero greenhouse gas emissions or carbon neutrality by or around mid-century.”

A French official said “mid-century” meant 2050 in the strict sense “but given the diversity of the G20 countries … it means everyone agrees to a common goal while providing a bit of flexibility to take into account national diversity.” Speaking on condition of anonymity, the French official cited top carbon polluters China and India, as well as Indonesia.

Some countries have set 2050 as their deadline for net zero emissions, while China, Russia and Saudi Arabia are aiming for 2060.

The future of coal, a key source of greenhouse gas emissions, has been one of the hardest things for the G20 to agree on.

At the Rome summit, leaders agreed to “put an end to the provision of international public finance for new unabated coal power generation abroad by the end of 2021.”

That refers to financial support for building coal plants abroad, something Western countries have been moving away from and major Asian economies are now doing the same: Chinese President Xi Jinping announced at the U.N. General Assembly last month that Beijing would stop funding such projects, and Japan and South Korea made similar commitments earlier in the year.

The failure of the G20 to set a target for phasing out domestic coal use was a blow to Britain, which had hoping there would be progress on the issue at COP26. The spokesman for Prime Minister Boris Johnson, Max Blain, said the G20 communique “was never meant to be the main lever in order to secure commitments on climate change,” which would be hammered out at the Glasgow summit.

He said the U.K. would continue to push for “ambitious commitments” on coal.

Youth climate activists Greta Thunberg and Vanessa Nakate issued an open letter to the media as the G20 was wrapping up, stressing three fundamental aspects of the climate crisis that often are downplayed: that time is running out, that any solution must provide justice to the people most affected by climate change, and that the biggest polluters often hide behind incomplete statistics about their true emissions.

“The climate crisis is only going to become more urgent. We can still avoid the worst consequences, we can still turn this around. But not if we continue like today,” they wrote, just weeks after Thunberg shamed global leaders for their “blah blah blah” rhetoric during a youth climate summit in Milan.

#AceNewsDesk report ………….Published: Nov.01: 2021:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#rome

(ROME) #G20 Summit Report: #ClimateChange & #COVID19 Are top of the agenda as leaders from the world’s major economies meet for the first time since that #pandemic began #AceNewsDesk report

#AceDailyNews says according to the first #G20 Report: It is the first time the G20 leaders are meeting face-to-face since the start of the pandemic: However, China’s Xi Jinping and Russia’s Vladimir Putin will not be in Rome for the summit, choosing to appear via video link instead.

G20 state leaders pose during a family photo session at the start of the G20 summit in Rome, Italy, October 30, 2021.
Reuters: The leaders are meeting in Rome for two days

The meeting comes amid increasingly dire warnings for the future if urgent action is not taken to cut emissions: The group – made up of 19 countries and the European Union – is estimated to account for 80% of the world’s emissions.

Speaking ahead of the two-day summit, UK Prime Minister Boris Johnson suggested failing to act would result in “our civilisation” going backwards, consigning “future generations to a life that is far less agreeable than our own”.

However, he acknowledged that neither the G20 meeting, nor the upcoming COP26 summit in Glasgow, which begins on Monday, would stop global warming, saying “the most we can hope to do is slow the increase”.

According to Reuters news agency, a draft communiqué outlines a promise from the G20 to work towards limiting the rise in temperatures to 1.5C (2.7F) – but no legally binding agreement will be made.

The draft also pledges to take “concrete measures” to stop the illegal logging, mining and wildlife trades, Reuters reports.

Mr Johnson is also expected to touch on coronavirus vaccine inequality during the summit, telling his fellow leaders “the pace of recovery will depend on how quickly we can overcome Covid”, with the first priority being “the rapid, equitable and global distribution of vaccines”.

More than six billion Covid vaccine doses have been administered worldwide. However, a letter addressed to Italian PM Mario Draghi, who is hosting the G20, from more than 160 former world leaders and global figures noted just 2% of people in low-income countries have received a jab.

On Saturday, Mr Draghi called the difference “morally unacceptable”. He called on fellow leaders to “do all we can” to vaccinate 70% of the world’s population by the middle of next year.

Meanwhile, US President Joe Biden will push for countries to boost energy production, amid rocketing prices, as well as discussing a plan to prevent future pandemics. He is also due to hold a meeting with Mr Johnson, as well as France’s Emmanuel Macron and Germany’s outgoing Chancellor Angela Merkel, to discuss reviving the Iran nuclear accord.

The group is also expected to endorse a global minimum corporate tax rate of at least 15%, which is backed by 140 countries around the world. The draft communiqué calls for it to be in place some time in 2023.

#AceNewsDesk report ………….Published: Oct.31: 2021:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#cliamatechange, #climatechange, #covid19, #g20, #italy, #rome

(ROME) #G20 Summit Report: Leaders of the world’s 20 major economies have approved a global agreement that will see the profits of large businesses taxed at least 15% #AceNewsDesk report

#AceNewsReport – Oct.31: It follows concern that multinational companies are re-routing their profits through low tax jurisdictions: The pact was agreed by all the leaders attending the G20 summit in Rome.

#AceDailyNews says according to BBC Business #G20 World leaders agree to historic tax deal, which was proposed by the US, is expected to be officially adopted on Sunday, according to Reuters news agency, and will be enforced by 2023 ….

#AceDailyNews says sounds great but by 2023 all these corporate companies will have found a loop-hole to be able to legally AVOID paying some or part of it …

READ: What was also discussed and agreed OR Not below ….

World leaders meet at the G20 summit
Rome’s G20 summit will set the tone for the COP26 climate summit in Glasgow, held immediately after

Climate change and Covid are also on the agenda of the summit, which is the leaders’ first in-person gathering since the start of the pandemic.

The G20 group – made up of 19 countries and the European Union – is short by two, however, with China’s Xi Jinping and Russia’s Vladimir Putin choosing to appear via video link.

US Treasury Secretary Janet Yellen said the historic agreement was a “critical moment” for the global economy and will “end the damaging race to the bottom on corporate taxation”.

She wrote on Twitter that US businesses and workers would benefit from the deal even though many US-based mega-companies would have to pay more tax.

Here at the G20, leaders representing 80% of the world’s GDP – allies and competitors alike – made clear their support for a strong global minimum tax. This is more than just a tax deal – it’s diplomacy reshaping our global economy and delivering for our people.— President Biden (@POTUS) October 30, 2021

The G20 summit comes ahead of the much-anticipated COP26 summit on climate change in Glasgow which begins on Monday. What happens at the G20 may set the tone for COP26, with sharp divisions remaining between countries on their commitments to tackling climate change.

Italy’s Prime Minister Mario Draghi opened the two-day G20 summit with a message of unification, telling world leaders that “going it alone is simply not an option. We must do all we can to overcome our differences”.

There are increasingly dire warnings from experts for the future if urgent action is not taken to cut carbon emissions.

Speaking to the BBC, UK Prime Minister Boris Johnson described climate change as “the biggest threat to humanity”, saying it posed a “risk to civilisation basically going backwards”.

However, he acknowledged that neither the G20 meeting nor COP26 would halt global warming, but could, if the right measures were taken, “restrict the growth in the temperature of the planet”.

According to Reuters news agency, a draft communiqué outlines a promise from the G20 to work towards limiting the rise in temperatures to 1.5C (2.7F), saying it “will require meaningful and effective actions by all countries”.

The draft also notes the need for “developed countries to mobilise $100bn (£73bn) annually from public and private sources through to 2025 to address the needs of developing countries” so they can tackle climate change – a promise richer countries have failed to keep since 2009, when it was initially pledged.

A message to Iran

Separately, the leaders of the US, Germany, France and UK met to discuss their “grave and growing concern” over Iran’s nuclear activities. Iran is not part of the G20 forum.

In a joint statement, the nations said that if Iran continued its nuclear advances, that would jeopardise the possibility of it returning to the 2015 nuclear deal with the US and economic sanctions being lifted.

They urged Iranian president, Ebrahim Raisi to “change course… to avoid a dangerous escalation”.

Former US President Donald Trump abandoned the deal in 2018, reinstating harsh sanctions against Iran. Since then Iran has increased its nuclear activities, violating much of the multi-national pact.

Talks with Tehran – which have been stalled for months – are due to restart in November.

The last few years have seen many countries looking after number one. They have made their own vaccines, they have put up trade barriers, they have put economic growth ahead of fixing the climate crisis. 

Mario Draghi’s point is that this has to stop. The Italian PM is saying that if G20 leaders want to curb global warming, end vaccine inequity, and sort an economic recovery, they have to start thinking and acting more multilaterally. 

And that doesn’t just mean coming to summits. It means – at times – putting wider global interests above narrow national imperatives. That is a big ask because it often involves challenging voters. So far not all world leaders seem ready to do that. 

There remain divisions over whether much wealthier nations are ready to cut carbon emissions, give more Covid vaccines to developing countries, and stabilise volatile energy prices.

The G20 summit will produce many words. But what will matter are its actions, above all on climate change, for that will play a huge part in determining whether the COP26 summit in Glasgow succeeds or fails. Dinosaur tells UN ‘don’t choose extinction’ as part of new climate campaign

COP26 climate summit – The basics

  • Climate change is one of the world’s most pressing problems. Governments must promise more ambitious cuts in warming gases if we are to prevent greater global temperature rises. 
  • The summit in Glasgow is where change could happen. You need to watch for the promises made by the world’s biggest polluters, like the US and China, and whether poorer countries are getting the support they need.
  • All our lives will change. Decisions made here could impact our jobs, how we heat our homes, what we eat and how we travel.

#AceNewsDesk report ……………..Published: Oct.31: 2021:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#covid19, #iran, #rome, #taxation, #world-leaders

(WORLDWIDE) #Climate Change & Global Warming Report: The Group of 20 rich countries are divided over phasing out coal and committing to limit global warming to 1.5 degrees Celsius as they prepare for a crucial summit in Rome next week, sources familiar with the negotiations said #AceNewsDesk report

#AceNewsReport – Oct.22: The need to curb emissions will be high on the agenda of the Rome G20 gathering on Oct. 30-31, seen as a key stepping stone immediately ahead of broader United Nations climate talks, called #COP26, to be held in Glasgow, Scotland.

#AceDailyNews says that according to a report G20 split over coal, 1.5 degree climate limit ahead of Rome summit according to sources and so far big polluters such as China and India have dug in their heels and little progress has been made since G20 energy and environment ministers met in Naples in July, said three sources, asking not to be named due to the sensitivity of the talks

Just as #COP26 is due to get underway and leaders look at #ProfitB4People again ….

“Countries are not moving, at the moment they are still just making sure their positions are heard loud and clear,” said one of the sources.

However he added that such intransigence was normal at this stage and any concessions were unlikely to come before G20 climate sherpas meet face-to-face next Thursday and Friday, immediately before their leaders’ weekend meeting.

“Where I see the problem is in the commitment to 1.5 degrees and in the phase out of coal and fossil fuels by China, India and Russia,” said another source, a G20 minister.

In Naples, energy and environment ministers recognized the desirability of limiting global warming to 1.5 degrees but fell short of a clear commitment to achieve the goal.

They also failed to reach unanimous agreement on fixing dates to end fossil fuel subsidies, halt international financing of coal projects and phase out coal power altogether, asking leaders to bridge the gaps at the upcoming Rome summit.

Big-hitters stay home

At least four G20 leaders are not expected to come to Rome, including China’s Xi Jinping, at the helm of the world’s biggest greenhouse gas emitter, and Russia’s Vladimir Putin, head of the largest energy producer.

One source said while such absences were “not a great political signal,” they would not necessarily prevent progress.

Neither Russia, China nor India have committed to achieving net zero carbon emissions by 2050, considered a vital goal in limiting global warming to 1.5 degrees.

So far China is proving most reluctant to commit to the 1.5 degree ceiling, while India is most intransigent in not pledging net zero emissions by 2050, one of the sources said.

China and India are also among a group of countries that have not yet presented new national plans, known as Nationally Determined Contributions (NDCs) ahead of COP 26, on how they will help curb climate change.

The COP26 president, Britain’s Alok Sharma, said in a speech this month the G20, which accounts for 80 percent of global emissions, would be “make, or break” for achieving success in Glasgow.

However, one of the sources said breakthroughs were more likely in Glasgow than in Rome.

Big emitters like China, India and Russia tend to feel pressured and hectored by the Western countries at the G20, he said, making them defensive and reluctant to concede ground.

The much larger UN forum was more “neutral” and conducive to compromise, he said.

The Rome G20 will also focus on the coronavirus pandemic and how to foster global economic recovery, Italian Prime Minister Mario Draghi, who will chair the meeting, said on Wednesday.

#AceNewsDesk report ………………Published: Oct.22: 2021:

Editor says …Sterling Publishing & Media Service Agency is not responsible for the content of external site or from any reports, posts or links, and can also be found here on Telegram: https://t.me/acenewsdaily all of our posts fromTwitter can be found here: https://acetwitternews.wordpress.com/ and all wordpress and live posts and links here: https://acenewsroom.wordpress.com/and thanks for following as always appreciate every like, reblog or retweet and free help and guidance tips on your PC software or need help & guidance from our experts AcePCHelp.WordPress.Com

#china, #climate-change, #g20, #global-warming, #naples, #rome, #worldwide

‘ IN VAIN HOPE TO STIMULATE THE ECONOMY G20 NATIONS PLAN TO BOOST GDP BY $2 TRILLION ‘

#AceFinanceNews – Latest post – Nov.16 – ‘ IN VAIN HOPE TO STIMULATE THE ECONOMY G20 NATIONS PLAN TO BOOST GDP BY $2 TRILLION ‘.

#g20

‘ PUTIN WILL MEET CAMERON & HOLLANDE AT G20 SUMMIT IN AUSTRALIA ‘

#AceWorldNews – MOSCOW – Nov.08 – President Vladimir Putin will meet with UK Prime Minister David Cameron and French President Francois Hollande during the November 15-16 G20 summit in Australia’s Brisbane, Kremlin aide Yury Ushakov said Friday.

Putin and US President Barack Obama will have an opportunity to talk on the sidelines of the event, RIA Novosti quoted Ushakov as saying.

Over the weekend, meetings are planned between the Russian president and Australian Prime Minister Tony Abbott, and also Japanese Prime Minister Shinzo Abe during the Asia-Pacific Economic Cooperation (APEC) summit in China.

#ANS2014

#g20, #summit