The G20's commitment to help poor countries cope better with the Covid-19 pandemic

The G20's commitment to help poor countries cope better with the Covid-19 pandemic

The Covid-19 pandemic has greatly affected the global economy. Poor countries are the most vulnerable to this global health crisis. Meeting a few days ago, the economy ministers of the G20 countries decided to take measures to help poor countries to recover their economies.

Increased capacity of the IMF to lend to poor countries

On April 7, 2021, major resolutions were taken at the G20 held in Italy. During their meeting, the G20 countries decided to postpone until the end of the year the deadline for paying the debt of poor countries. This measure aims to help its last, to recover their economy severely weakened by the pandemic. The G20 countries are also ready to support the IMF in its desire to increase aid to poor countries. Thus a sum of 650 billion will be injected in the form of special drawing rights. This will allow the IMF to scale up its assistance to the most vulnerable countries in this period of pandemic.

Relaunch of the global minimum corporate tax proposal

The USA in addition to these measures the G20 proposes to tax large multinationals. If this proposal is implemented, large companies would have to pay taxes, the percentage of which would vary between 13% and 21%. The income from these taxes should be used to help poor countries turn around their economies. The companies most affected by this policy are those operating in the digital sector. The latter have become accustomed to settling in countries where the tax rate is low. On this US proposal, the G20 promises to do everything in its power to create a climate favorable to the application of this measure.

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