G20 coronavirus plan focuses on poorer countries' debt problems

G20 SUMMIT - WASHINGTON. The Group of 20 major economies said on Tuesday that they would present a coronavirus action plan in two weeks to address the debt vulnerabilities of the poorest countries and deliver financial aid to emerging economies.

G20 finance ministers and central bank governors discussed in a videoconference how the International Monetary Fund and the World Bank could ease a lack of liquidity in emerging markets, which have seen an outflow of $83 billion in capital.

In addition, the G20 countries will work with the group's Financial Stability Board, set up after the 2008 financial crisis, to coordinate regulatory and supervisory measures taken in response to the coronavirus.

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Working groups are due to flesh out details of the plan before the group's next meeting on April 15. That will come during the virtual Spring Meetings of the IMF and World Bank, whose leaders also participate in the regular G20 calls.

The G20 has been accused of being slow to respond to the outbreak, which is expected to trigger a global recession as governments impose curfews and shut shops, travel comes to a halt and manufacturing supply lines are disrupted.

Last week, leaders of G20 countries pledged to spend over $5 trillion to limit job and income losses from the outbreak, while working to ease supply disruptions caused by border closures.

The IMF and the World Bank have jointly called for urgent action by official bilateral creditors to suspend debt service payments for the most vulnerable countries, some of whom have also been hit hard by a plunge in oil prices.