A City Hall employee (left) delivers a bagful of free food to residents amid a lockdown imposed to curb the spread of the coronavirus in Bogota, Colombia, May 27, 2020. (FERNANDO VERGARA / AP)

UNITED NATIONS - China on Thursday called on multilateral and private creditors to take actions and join in providing debt suspension and relief for developing countries.

"Additional Special Drawing Rights provided by the International Monetary Fund (IMF) is also vital for easing the lack of liquidity in developing countries," reads to a Chinese statement delivered at the virtual High-Level Event on Financing for Development in the Era of COVID-19 and Beyond.

"China will work with all parties to reach early consensus on this issue, so that the IMF will move forward accordingly," the statement reads

As COVID-19 is spreading across the world, developing countries face increasing challenges on financing for development. 

China's statement

Convened by Canadian Prime Minister Justin Trudeau, Jamaican Prime Minister Andrew Holness, and United Nations (UN) Secretary-General Antonio Guterres, the virtual event aims to advance concrete solutions to the development emergency caused by the COVID-19 pandemic.

With more than 50 heads of state and government participating, the high-level event was the most inclusive gathering of countries to focus on the socio-economic recovery and financing needs amid the pandemic.

"As COVID-19 is spreading across the world, developing countries face increasing challenges on financing for development. China empathizes with their difficulties, and supports the international community in making joint efforts to help developing countries to mobilize resources to combat the pandemic and stabilize their economy," reads the Chinese statement.

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The fundamental approach to meeting the financing challenges of developing countries, according to the statement, is to strengthen international development cooperation and increase input in development, in order to provide more resources for developing countries and help them enhance self-development capability.

"We should support the UN in playing a coordinating role in implementing the 2030 Agenda, and support UN agencies in mobilizing resources and helping developing countries fight the pandemic and achieve recovery," reads the statement.

It was noted in the statement that in recent months, guided by the vision of a global community with a shared future, China launched the largest global emergency humanitarian action since the founding of the People's Republic of China.

Widespread debt crises will set back the response to COVID-19 and impede sustainable development for many years to come. The countries affected would have no prospect of achieving the Sustainable Development Goals.

Antonio Guterres, UN secretary-general

Until now, China has provided emergency assistance to nearly 150 countries and four international organizations, sent 27 medical expert teams to 25 countries in urgent need, and exported 61.9 billion facial masks and 280 million protective suits.

China will work with other Group of 20 members to implement the Debt Service Suspension Initiative for the poorest countries, and is also ready to work with the international community to bolster support for the hardest-hit countries under the greatest strain of debt service, so that they could tide over the current difficulties, according to the statement. 

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Guterres: Use more tools to help world recover

While speaking at the virtual event, Guterres called on the international community to use more tools, including considering a new issuance of Special Drawing Rights, to help the world, especially poor countries, to recover from the destruction caused by the pandemic.

Speaking on sovereign debt, Guterres said that the economic fallout from the pandemic threatens to cause "a wave of defaults" in developing countries.

"Widespread debt crises will set back the response to COVID-19 and impede sustainable development for many years to come. The countries affected would have no prospect of achieving the Sustainable Development Goals," he said.

The UN chief noted that "alleviating crushing debt cannot be limited to the least developed countries".

"It must be extended to all developing and middle-income countries that request forbearance as they lose access to financial markets," he added.

"We urgently need durable solutions on debt, to create space for investments in recovery and the Sustainable Development Goals," said Guterres.

"We need to respond with unity and solidarity. A key aspect of solidarity is financial support," Guterres said.