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G20: 46 Countries Applied for Relief Under DSSI

The G20 concluded the International Financial Architecture Working Group meetings for September 2020, where it discussed updates on DSSI. Photo: Twitter account of G20 Saudi Arabia
The G20 concluded the International Financial Architecture Working Group meetings for September 2020, where it discussed updates on DSSI. Photo: Twitter account of G20 Saudi Arabia
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G20: 46 Countries Applied for Relief Under DSSI

The G20 concluded the International Financial Architecture Working Group meetings for September 2020, where it discussed updates on DSSI. Photo: Twitter account of G20 Saudi Arabia
The G20 concluded the International Financial Architecture Working Group meetings for September 2020, where it discussed updates on DSSI. Photo: Twitter account of G20 Saudi Arabia

The Group of 20 major economies on Friday said they are looking at structural approaches to secure longer-term financing for developing countries, including development of domestic capital markets and work to catalyze private sector investment.

In a statement, the Saudi G20 secretariat said 46 countries had applied for relief under the Debt Service Suspension Initiative (DSSI) approved by G20 members in April that offers a freeze in official bilateral debt payments to free up funds for countries to spend on fighting the coronavirus pandemic.

“All major official bilateral creditors remain committed to suspending due debt service payments to the most vulnerable countries in these challenging times," said Bandr Alhomaly, the Saudi G20 Presidency IFA WG policy lead.

“These commitments are complemented by the support of the IMF and Multilateral Development Banks to DSSI-eligible countries,” a statement issued by the Saudi G20 Secretariat quoted him as saying.

The initiative provides an estimated $14 billion of immediate liquidity relief by bilateral official creditors alone in 2020, said the statement.

The G20 is also working with international organizations to complement these efforts by committing USD75 billion for DSSI-eligible countries between April-December 2020 alone, part of their USD230 billion commitment for emerging and low income countries as a response to the pandemic, it said.

“In addition, since late March, the IMF has provided debt relief to 28 DSSI-eligible countries and also provided financial assistance of more than USD88 billion to 81 countries, 53 of which are DSSI-eligible countries facing the economic impact of COVID-19,” it added.

“As we begin to look towards a stronger, more resilient recovery, the G20 is exploring structural approaches to secure longer-term financing to developing countries, including through the development of domestic capital markets and crowding-in private sector investments,” Alhomaly said.

“This comes alongside efforts to better manage risks from excessive capital flow volatility, while unlocking greater gains from enhanced cooperation between development partners,” he added.

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Iran-Israel Tensions Threaten Global Trade, Energy Security

An aerial view of Haifa Port in northern Israel before the onset of military tensions with Iran (Reuters). 
An aerial view of Haifa Port in northern Israel before the onset of military tensions with Iran (Reuters). 
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Iran-Israel Tensions Threaten Global Trade, Energy Security

An aerial view of Haifa Port in northern Israel before the onset of military tensions with Iran (Reuters). 
An aerial view of Haifa Port in northern Israel before the onset of military tensions with Iran (Reuters). 

The intensifying conflict between Iran and Israel is raising serious concerns over the safety of global trade routes and energy supplies. As the situation escalates, analysts warn of severe repercussions for the global economy, particularly if strategic maritime passages like the Strait of Hormuz and Bab el-Mandeb are compromised.

Experts highlight that any disruption to these chokepoints - through which a significant portion of the world’s oil and gas flows - could send shockwaves through international markets.

Rising insurance premiums, increased shipping costs, and a potential surge in energy prices are among the immediate risks. Such instability could accelerate global inflation and weaken already fragile economic growth, especially as major economies face tariff-related pressures and slowing demand.

According to Dr. Fawaz Al-Alamy, a specialist in international trade, the continuing geopolitical unrest is likely to slow global trade growth by over 7% in 2025 and 2026. Sea freight, which carries about 90% of global trade, is particularly vulnerable. Dr. Al-Alamy also points to revised forecasts from major institutions, with trade growth now expected to drop to 2.9% in 2025 and possibly lower in 2026.

The Gulf region, which last year ranked sixth globally in merchandise trade, faces specific challenges. The Strait of Hormuz alone handled over 25% of global seaborne oil and 20% of LNG shipments in 2024 and early 2025. A disruption here would hit Asian markets hardest, as China, India, Japan, and South Korea together receive nearly 70% of Gulf crude exports.

The United States also imports around 500,000 barrels per day from the Gulf via Hormuz, about 7% of its total crude imports. A supply interruption could double oil prices and drive maritime shipping costs up by 60%, leading to slower global growth, reminiscent of post-COVID economic conditions.

Still, Al-Alamy sees potential for regional cooperation. Gulf states could invest in alternative export routes through the Arabian Sea and Red Sea, and strengthen trade ties with Asia, Africa, and Europe. Logistics and tech investments may also help the region emerge as a global trade hub.