The EU supports "a global and coordinated approach" for a moratorium on the debt of developing countries, in support of the G20 commitments and the call by the Bretton Woods institutions to help these countries cope with the impact of the new coronavirus, the European Commission said on Tuesday 14 April.
"We have already said this", declared a spokesperson for the institution, reiterating what the High Representative of the Union/Vice-President of the Commission, Josep Borrell, had said, particularly in the margins of the video conference of European development ministers on 11 April. And added that it was necessary to ensure "debt sustainability within the framework of the World Bank and the IMF".
Call from the African Union. The spokesperson was responding to the press, who asked what the EU's answer would be to the African Union's (AU) call on Sunday 12 April for a deferral of debt and debt servicing and was surprised that, on Monday evening, during his televised speech, French President Emmanuel Macron announced "a cancellation of the debt of African countries".
AU Chairperson Cyril Ramaphosa has appointed a special envoy to mobilise international economic support for Africa's fight against COVID-19 and for "soliciting rapid and concrete support as pledged by the G20, the EU and other financial institutions". He called for "a comprehensive stimulus package for Africa, including deferred debt and interest payments".
The day before, the EU had announced €3.25 billion in support for African countries, including €2.06 billion for sub-Saharan Africa, out of the €20 billion earmarked for developing countries or countries in crisis.
The IMF alleviates debt service for the 25 poorest countries. On Tuesday, the IMF decided on immediate debt service relief for the 25 poorest and most vulnerable countries, a decision which MEP Udo Bullmann (S&D, Germany) immediately described as "a remarkable first international example". He immediately invited the G20 leaders to draw inspiration from it.
The first countries to benefit will be Afghanistan, Benin, Burkina Faso, the Central African Republic, Chad, the Comoros, the Democratic Republic of the Congo, Gambia, Guinea, Guinea-Bissau, Haiti, Liberia, Madagascar, Malawi, Mali, Mozambique, Nepal, Niger, Rwanda, São Tomé and Príncipe, Sierra Leone, Solomon Islands, Tajikistan, Togo and Yemen.
According to the World Bank, the total external debt of sub-Saharan African countries (debt and debt service) is $365 billion at the end of 2018, of which $110 (Bn) is owed to multilateral creditors, $99 (Bn) to bilateral creditors and $155 (Bn) to private creditors (in the form of bonds for $117 (Bn)). The World Bank debt service relief could amount to $20 billion. (Original version in French by Aminata Niang)