Boost financial flows to help poor states fight Corona, world leaders urged

Tuesday, June 2nd, 2020 00:00 |
President Uhuru Kenyatta. Photo/PSCU

Seth Onyango @SethManex

President Uhuru Kenyatta has urged world leaders to boost global liquidity and financial flows to developing countries to help them wade through the economic fallout from the Covid-19 pandemic.   

 In a virtual meeting with global leaders on Friday, Uhuru appealed to rich nations to address debt vulnerability and enhance external financing for struggling developing countries.  

 His sentiments come on the back of coronavirus-driven debt crisis which is pushing poor countries to toward default.  

A United Nations report shows the virus is causing investor panic, leading to equity volatility, widening bond spreads and depreciating currencies — setting the stage for debt and financial crises.  

 Covid-19 crisis has shaken global financial markets with heavy losses and intense volatility that has prompted investors to move around $90 billion out of emerging markets – the largest outflow ever recorded.  

China’s debt

 Experts warn that the coronavirus chaos could strengthen China’s debt hold on struggling nations like Kenya.  

And according to the Guardian, Beijing could either take control of other countries’ assets or forgive debt to boost its soft power as economic fallout widens.  

 On Friday, Uhuru emphasised the need for global solidarity in response to Covid-19 asserting all stakeholders need to come together so as to overcome the challenges posed by the pandemic.

He said Kenya is doing her best to not only slow down the spread of the virus in the country but also support the region and the continent.

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