Closing of premises during COVID19
By Devin Watkins
July 4 2020
The Holy See relaunches Pope Francis’s appeal for debt relief for nations struggling due to the economic effects of the Covid-19 pandemic.
Archbishop Ivan Jurkovič has renewed the Holy Father’s appeal for debt relief at an international level.
The Holy See’s Permanent Observer to the United Nations in Geneva on Thursday addressed the 67th Executive Session of the UNCTAD Trade and Development Board.
Multifaceted economic shocks
Archbishop Jurkovič noted that the Covid-19 crisis is putting excessive financial strain on developing nations.
The worldwide economic crisis, he said, presents a unique challenge that has upset the balance of the world economy.
Widespread lockdowns have led to a “deep supply shock”, since many factories and production facilities have been forced to close.
Lockdowns have also caused “consequent demand shocks”, which are the result of people having less money to spend because of vast job layoffs and corporations being unwilling to commit to long-term investment plans due to economic uncertainties.
Worse in developing nations
“There is no doubt,” said Archbishop Jurkovič, “that the current Covid-19 crisis will more severely affect the lives and livelihoods of those in the developing world.”
One way to ease the misery of people in poorer nations, he added, would be to tackle “the crippling external debt burdens” they have accumulated in recent years.
The Vatican representative urged the international community to “deliver speedy and substantive debt relief to crisis-stricken developing countries”.
Archbishop Jurkovič then quoted Pope Francis’ Urbi et Orbi message of 12 April 2020, in which he urged that “all nations be put in a position to meet the greatest needs of the moment through the reduction, if not the forgiveness, of the debt burdening the balance sheets of the poorest nations.”