The coronavirus pandemic has impacted economies
The Financial Stability Board (FSB) Regional Consultative Group (RCG) for Sub-Saharan Africa has underscored the need for a scientific-based approach to responding to the coronavirus pandemic.
A statement issued by the FSB following a virtual meeting said lessons learned so far from the COVID-19 pandemic require this approach to support the financing of
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“The response to COVID-19 should be based on scientific evidence and the supply of vaccines should consider the needs of developing countries. Members also reviewed vulnerabilities related to foreign currency funding, as illustrated by the external funding pressures experienced by emerging market economies during the March 2020 market stress,” the statement said.
It added, “Members discussed potential longer-term effects of the COVID-19 pandemic, including debt overhang and corporate viability issues, and their possible impact on the financial system’s resilience and ability to support economic growth.”
The FSG also called for increased trade-offs towards keeping in place measures to support economic financing.
Meanwhile, the Group during the virtual meeting received an update on the FSB’s work programme for 2022 and discussed areas of the workplan of importance for Sub-Saharan Africa. This includes work on climate risks and on cross-border payments.
