Slider
Slider

|

Slider

Palau, Pacific nations call for debt forgiveness

Regional News
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

KOROR (Island Times/Pacnews) --- Pacific nations are supporting Palau’s call for debt forgiveness to cope with the challenges they face amid the coronavirus pandemic. 

Finance Minister Elbuchel Sadang said the call was made during the Asian Development Bank’s 53rd Annual Meeting of the Board of Governors online.

He said the Pacific is facing serious economic problems due to Covid-19.

At the Pacific governors’ meeting with ADB President Masatsugu Asakawa on Wednesday last week, Sadang said Palau raised the issue of debt relief and reclassification of the island-nation as a high-income country. 

As a high-income country Palau is no longer eligible for grants.

Sadang said Palau’s proposal of debt forgiveness was included in the statement delivered by Federated States of Micronesia Secretary of Finance and Administration Eugene Amor on behalf of the Pacific nations. 

Amor said Pacific members would also like the ADB to consider restructuring existing debts and allow delayed payments.

He said the ADB should consider forgiveness of debts, “ as a last resort if the effects of the crisis deepens.”

Amor said Covid-19 has upended the Pacific economies and its impact is alarming.

In 2019, he said, Pacific economies expanded by about 4%. But this year, he added, Pacific economies are facing a 5 to 10%  drop in their GDP.

 Based on the ADB’s latest economic outlook, Palau’s GDP is expected to contract by 9.5% in 2020 and 12.8% in 2021.

 

 

previous arrow
next arrow
Shadow
Slider

Read more articles

Visit our Facebook Page

previous arrow
next arrow
Shadow
Slider