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“The United States strongly supports the decision by G20, Paris club Co temporarily suspend debt payments by poorest countries to free funds for pandemic response,” US Treasury Secretary Steven Mnuchin said in a statement on Thursday.

Additional takeaways

“Private creditors should explore voluntary participation in debt suspension.”

“Debt sustainability analyses by IMF, the World Bank will pave way for further action on debt as needed.”

“Going forward, all creditors should provide credit consistent with the IMF, the World Bank’s debt sustainability framework.”

“General allocation of the IMF’s Special Drawing Rights (SDR) is not an effective tool to respond to urgent needs.”

“A better approach would be for the IMF members to provide grants to the IMF’s catastrophe containment and relief trust, and grants and loans to its poverty reduction growth trust.”

“The US is exploring contribution to both IMF facilities; members could also explore using existing SDRs to support low-income countries.”

“The IMF, the World Bank should be careful to maintain focus on their core mandates even as they adapt to the current crisis.”

Market reaction

These comments were largely ignored by the market participants and the US Dollar Index was last seen adding 0.2% on the day at 99.75.