G20 Saudi Arabia and the Paris Forum Explore Restoring Financial Resilience and Sustainability to Emerging Economies
The G20 Presidency and the Paris Forum held a high-level ministerial conference on July 8 to discuss international capital flow challenges in vulnerable markets, policy recommendations to rebuild sustainable capital flow, and deploy financing for development. H.E. Mohammed Al-Jadaan, Saudi Arabia’s Minister of Finance, and Mr. Bruno Le Maire, Minister of Economy and Finance of France, co-chaired the conference and were joined by finance ministers and governors, leaders of international financial institutions and private financial institutions, and key scholars. As a response to the economic impact due to the COVID-19 crisis, governments and central banks implemented monetary and fiscal measures to mitigate the risks of financial instability, especially to the emerging and least developed countries. The launch of the Debt Service Suspension Initiative (DSSI), endorsed by the World Bank and the International Monetary Fund (IMF), will allow low-income countries to suspend payments on their debt, freeing up to $14 billion in funds, and instead focus on managing the economic, health and social impact of the pandemic.
Three key issues were covered during the conference in three concurrent sessions; The first session was “Sustainable Financing for African Development,” which included further discussions on DSSI, strategies to improve market access for African countries and help the private sector in African countries. The second session was “Policy Options to Tackle the Current Situation and Support the Return of Capital Flows to Emerging Economies,” which discussed capital flows projections, capital outflow risk mitigation plans, and the role of the IMF. The third session was “Building Further Resilience and More Sustainable Sources of Financing for the Future,” which evaluated strategies to build a resilient, sustainable economy for developing and emerging markets.
Key outcomes of the conference will be further discussed during the next G20 Finance Ministers and Central Bank Governors’ meeting, which will be held on July 18.