IMF warns of poor nations’ ‘economic collapse’ without G20 debt relief extension.

The International Monetary Fund (IMF) has issued a warning that poor nations could face an “economic collapse” if the G20 debt relief extension is not extended. The G20, or Group of Twenty, is a forum for the world’s largest economies to discuss global economic issues. In April 2020, the G20 agreed to suspend debt payments for the poorest countries until the end of the year to help them cope with the economic impact of the COVID-19 pandemic.

However, the IMF has warned that the economic situation in many of these countries remains dire, and that without an extension of the debt relief program, they could face a catastrophic collapse. The IMF estimates that the total debt of poor countries has increased by $5.5 trillion since the start of the pandemic, and that many of these countries are now at risk of defaulting on their loans.

The IMF has called on the G20 to extend the debt relief program until at least the end of 2021, and to consider further measures to support poor countries. These measures could include debt restructuring, grants, and concessional loans.

The IMF’s warning comes as the world faces a new wave of COVID-19 infections, which is likely to further exacerbate the economic situation in many poor countries. The IMF has warned that the pandemic could push an additional 95 million people into extreme poverty this year, and that the economic recovery will be “long, uneven, and uncertain.”

The G20 has already taken some steps to support poor countries, including providing funding for the COVAX vaccine distribution program. However, the IMF argues that more needs to be done to prevent an economic collapse in these countries.

The IMF’s warning should serve as a wake-up call to the world’s leaders. The COVID-19 pandemic has highlighted the deep inequalities that exist in our global economic system, and it is essential that we take action to support the most vulnerable countries. Failure to do so could have catastrophic consequences, not just for these countries, but for the entire world.