Skip to content
Magazine
Sunday, August 3, 2025
SUBSCRIBE
  • About Us
  • Belgium News
    • Belgium Police News
    • Brussels News
  • EU Institutions News
    • European Commission News
    • European Parliament News
    • European Council News
  • Europe News
  • World News
  • Belgium Business News
  • Culture and Society News
  • In Depth
    • Ambassador’s Corner
    • The American Angle
    • Sustainable Perspective
    • Europe With Transparency
    • Place de la Bourse
    • The Macro-Economist
    • Southeast Europe
  • About Us
  • Belgium News
    • Belgium Police News
    • Brussels News
  • EU Institutions News
    • European Commission News
    • European Parliament News
    • European Council News
  • Europe News
  • World News
  • Belgium Business News
  • Culture and Society News
  • In Depth
    • Ambassador’s Corner
    • The American Angle
    • Sustainable Perspective
    • Europe With Transparency
    • Place de la Bourse
    • The Macro-Economist
    • Southeast Europe
SUBSCRIBE

EU promises debt relief for African countries

Anna-Karin Friis by Anna-Karin Friis
26 January 2021
in Culture and Society News
South African money and economy under pressure concept image.

South African money and economy under pressure concept image.

Brussels (Brussels Morning) As low-income countries are under pressure due to the corona crisis and increasingly exposed to the risk of not  being able to service their debt, the EU has commited to aiding countries, especially in Africa, to acquiring international debt relief.

The intent is to provide a temporary moratorium to the poorest countries to help them manage the impact of the pandemic. 

The current Debt Service Suspension Initiative by the G-20’s Paris Club should be extended by another six month until the end of June next year and perhaps even further.

Debt suspension would serve as support for the countries concerned by freeing up fiscal funds for social, health and economic measures required to respond to the pandemic. According to the EU, all lending institutions acting on behalf of the G20 members should implement debt relief. 

For countries with unsustainable debt levels, further relief may be required. The G20 group of countries are agreed that this would be a step towards debt restructuring on a case-by-case basis along with the IMF/World Bank and  the Paris Club, while ensuring private sector participation.

However, debt treatments would have to be contingent on a strong conditionality of public financial management, plus domestic resource mobilisation as set by an IMF programme. Meanwhile, the IMF should come up with sustainable financing options for developing countries. 

This is still considered a major step forward in sovereign debt restructuring international architecture.

The initiative is linked to debt transparency, a critical factor for a sound assessment of debt sustainability, that requires disclosure of all public debt data. Better data on debt overall is a condition for the reconciliation process and for international efforts to strengthen debt transparency in low-income countries. 

Debt relief for the Sahel region 

The issue of debt relief is central to the EU’s relations with the G5 Sahel countries (Mali, Niger, Chad, Mauritania and Burkina Faso). Their respective leaders held a video conference with EU President Charles Michel on Monday that addressed COVID-related debt relief. 

”Debt relief is part of the response to the COVID-19 crisis,” Michel said. ”I have referred the matter to the members of the European Council, which has committed itself to advancing, in a coordinated manner in the relevant multilateral fora, international efforts to relieve the debt of African countries.”

Development efforts in the Sahel aim at restoring basic services in fragile areas and 

enhanced state presence across the territory for strengthened security. The EU especially wants the Sahel countries to commit to anti-terrorism efforts and better defence capabilities in their strategy on the Sahel. 

Tweets by eucopresident
Tweets by rochkaborepf
Tweets by CheikhGhazouani
Tweets by MIdrissDebyItno
Tweets by IssoufouMhm

Related News:

  • Debt relief and corona discussed by G20 finance ministers and EU’s Gentiloni
  • No EU public debt relief in sight
  • France promises major relief for farmers hit by April frost
  • ECB could stop buying state bonds from EU countries with too much debt
Tags: Brussels LatestDebtNews
Next Post
Image concept with the result of the HIV test.

On World AIDS Day, EU considers its role curbing the health crisis

Latest post

EU-elections-UK

EU elections: UK looks on from the “outside”

1 year ago
Galeries-Royales-Saint-Hubert

What Makes Galeries Royales Saint-Hubert an “Institution”?

1 year ago

Most Read

    Follow Brussels Morning
    Facebook Twitter Youtube Linkedin

    Browse Important News

    Belgium News
    Brussels News
    Culture and Society News
    Economy News
    EU Institutions News
    European Commission News
    European Council News
    European Parliament News
    Europe News
    Health And Fitness News
    Southeast Europe News
    Sustainable Perspective
    World News
    Diplomacy News
    US Elections News

    About Us

    Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.

    More Info

    • About Us
    • Advertise With Us
    • Contact Us
    • Cookies Policy

    Join Our Newsletter

    Brussels Morning Newspaper – All Rights Reserved © 2024

    No Result
    View All Result
    • Home
    • About Us
    • Belgium News
      • Belgium Police News
      • Brussels News
    • Brussels Bubble
      • European Parliament News
      • European Commission News
      • European Council News
    • Wider Europe
      • Member States
    • World News
    • Business & Society
    • Europe With Transparency
    • Culture & Society
    • Policy Talks
      • Place de la Bourse
      • The Macro-Economist
      • Sustainable Perspective
      • Ambassador’s Corner
      • The American Angle
      • Southeast Europe
    • Print Magazine

    Brussels Morning Newspaper - All Rights Reserved © 2020

    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
    Cookie settingsACCEPT
    Privacy & Cookies Policy

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
    Non-necessary
    Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
    SAVE & ACCEPT