Call for equal and equitable access to financial support for developing and least-developed countries

China said that the abuse of trade tariffs is exacerbating developing countries’ inability to service their debt.

Speaking at the G20 meeting of parliamentary speakers in Kleinmond on Thursday, National People's Congress MP, Gu Zhenchun, reminded the gathering that China is the biggest implementer of the debt service suspension initiative launched by the World Bank and the International Monetary Fund during the Covid-19 pandemic.

Russian MP Konstantin Kosachev, meanwhile, said both these financial institutions were overstepping their mandate and benefiting from the struggles of highly indebted developing nations.

Zhenchun said that high debt and increasing service costs, particularly in poor nations, are not only hindering development but also global economic stability.

Recently, the US hiked trade tariffs across the world, including South Africa, adding an extra burden on highly indebted nations.

"In recent years, the abuse of tariffs by some countries has imposed new impacts on the global economy. This further exacerbates the debt servicing of developing countries, and hinders progress towards achieving the sustainable development goals."

Meanwhile, Russia's Kosachev took a swipe at the roles being played by world financing institutions.

"The International Monetary Fund must stick to its original mandate of overseeing the global monetary and financial system, and the World Bank should focus on promoting the development of countries which really need its care and assistance."

Kosachev said multilateral banks must guarantee equal and equitable access to financial support to developing and least-developed countries.