President of Bolivia, Luis Arce, proposed today to the members of the Southern Common Market (Mercosur) to request developed countries and financial organizations to cancel the debt of developing nations.
The head of state argued at the virtual summit of that body, of which Bolivia is an associated country in the process of accession, that this measure will alleviate the economic crisis caused by the Covid-19 pandemic.
Arce suggested the formation of a negotiating table with developing countries that allows a strategy with options, terms, financial conditions, restructuring, forgiveness or deferral of debt payments.
The Bolivian president considered that this request should immobilize debt service payments, create a loan fund, and access soft loans and sources of external financing.
In pursuit of these purposes, he proposed to promote the creation of a global forum on foreign debt and economic crisis within the framework of the United Nations (UN).
The Bolivian ruler proposed that these negotiations are raised “by multilateral organizations before creditors and governments with which they have bilateral debts.”
The Bolivian initiative is based on recommendations from the report of the UN Conference on Trade and Development to meet the Sustainable Development Goals of the 2030 Agenda.
The secretary general of the world body, António Guterres, warned that Latin America could suffer a great sovereign debt crisis in 2021 due to the strong public spending of the countries to face the Covid-19 pandemic.
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