Oxfam wants universal debts suspended

A humanitarian agency Oxfam Malawi has pleaded with development partners to consider suspending debts that developing countries have as they struggle to contain and combat the spreading Coronavirus.

This call has been made as some African Countries continue to register cases of the Covid-19.

With this Oxfam Malawi has observed that most developing nations are likely to face financial challenges dealing with the pandemic.

The call was made ahead of a summit by G20 leaders earlier in the week to find solutions to the world health crisis triggered by the Covid-19.

The organization also argues that since most African countries rely on donor aid, it is going to be financially challenging for them to combat the virus.

Oxfam believes that among others, the withdrawal of repayment of debts by developing nations including Malawi, will help the countries to have readily available financial resources to support their health sector.

Meanwhile, the World Bank and International Monetary Fund have outlined debt relief policies amidst the life threatening crisis.

However, the proposals show that only bilateral debts will have to be suspended.

Thus far, the G20 countries have injected in $5 Trillion into the global economy to counter the pandemic amid forecasts of a deep recession.

The World Health Organization indicates that at the moment, over 40 African countries have been infected by Coronavirus with South Africa topping the list after registering over 1,100 cases of Coronavirus.

Currently health officials in Malawi have indicated no case has been registered.

 

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