The COVID-19 crisis has placed extraordinary pressures on the
global financial system. The impact on developing
countries—particularly in Africa—is dramatic, creating
sudden and unexpected risks for states and investors. Oil exports
and commodity prices have dropped precipitously, while remittances
and tourism have largely dried up. On April 15, 2020, the G20
finance ministers agreed to a "time-bound suspension of debt
service payments" for 77 of the world's most needy
countries (the so-called IDA countries, for International
Development Association). Approximately $12 billion was due for
payment between May 1, 2020, and the end of the year. This
"time out" only impacts sovereign credit from the G20
countries.
