ICC Secretary General, John W.H. Denton AO, said:
“We are deeply concerned by reports that, despite the laudable efforts of the Indonesia Presidency, G20 finance ministers may be unable to reach agreement on a package of measures to ensure emerging markets have sufficient fiscal space and liquidity to deal with the growing global cost-of-living crisis.
“While we appreciate that the war in Ukraine makes ‘business as usual’ within the G20 impossible, the gravity of the economic and social situation facing many developing nations means that the world’s largest economies must find a way to set political differences aside and take the technical decisions needed to avert a widespread debt and liquidity crisis.
“We estimate that around 15 economies are already at severe risk of defaulting this year as a result of the combined effects of the Covid-19 pandemic and the negative spill-over of the war in Ukraine. From a global business perspective, we are especially concerned that a widespread debt crisis risks creating further supply chain disruptions – and, by extension, a further drag on growth and productivity that many companies can ill afford in such a fragile economic climate.
“More fundamentally, G20 finance ministers must not leave Bali without agreements in place – via whatever means necessary – to ensure that no government is left without the financial means to help their citizens and businesses cope with the unprecedented increases in the cost of energy and food we have seen in recent months. At a bare minimum, that means firm agreements to suspend debt service obligations and enable the IMF to provide fresh liquidity to all countries in need.”