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Mexico asks G-20 to remove amounts of debt from poor countries

President Andrés Manuel López Obrador during his second participation in the Virtual Summit of G-20 Leaders. Image: Video Capture


In order to prevent the debts of nations from becoming a new global crisis in the future, President Andrés Manuel López Obrador proposed two actions to the G-20 to boost poor and middle-income countries.

Through his social networks, the president shared his second speech at the G-20 Virtual Summit of Leaders, in which he made two proposals to stop a possible economic crisis that would affect the most vulnerable populations.

The two points proposed were the following:

  1. Make a reality of removing amounts of debt and paying debt service to poor nations.
  2. Ensure that middle-income countries can have access to credit with interest rates equivalent to those prevailing in developed countries.

“The consequent loss of wealth raised our country’s public debt to 44.8 51.1 of GDP, the same has happened throughout the world, the debt grew from the pandemic by an average of 20 percent and if we do not address this issue from now on in the future it will become another threat to economic stability and social well-being, ”he said.

During the meeting, López Obrador highlighted the actions carried out by his administration to overcome the economic crisis, as he assured that with these it is demonstrated that the national economy begins to grow.

He explained that, for example, of the more than one million 500 thousand formal jobs lost during the pandemic, at the moment 500 thousand have been registered and he trusted that in March 2021 the IMSS will have in its registry the 20 million of 500 thousand workers with which he had prior to the health emergency.

He also highlighted that the consumption of Mexicans has increased, because until yesterday the department stores had sold 8 percent more than in the same period as in 2019.

“The forecast we made that the crisis would have a V-shaped behavior is coming true: we would fall to the bottom, as happened in April, but we would come out of the hole as we have been doing, the economy begins to grow,” he said.

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He also informed world leaders about the work of the government he leads to prioritize aid, without intermediaries, to the neediest sectors in Mexico, as well as avoiding the country’s debt to address the health crisis.

“It was useful for us to abandon the economic recipes applied during the neoliberal period, starting by discarding the strategy of indebting the people to rescue those above, now it was different.

“Thanks to the austerity measures and the fight against corruption, we did not resort to new loans and the resources released were allocated directly, without intermediaries, to the base of the social pyramid and from there it went up to the top; in other words, preference was given to the poor and to members of the middle classes, ”he stated.

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