DUBAI: Financial leaders of the world’s biggest economies claimed a “historic achievement” in reaching a framework to deal with heavily indebted poorer countries, which have been severely impacted by the coronavirus pandemic.
The finance ministers and central bank governors of the G20 nations agreed at a virtual meeting organized by the Saudi presidency in Riyadh to extend debt suspension for these countries by a further six months until June 2021.
Saudi Finance Minister Mohammed Al-Jadaan said the extension, as well as agreement on a “common framework” for handling insolvency issues for poorer countries, was a “major breakthrough in the global debt agenda.”
He added that some 73 poorer countries were eligible for debt suspension under the G20 scheme, and that 46 had already benefitted from the provisions.
Debt suspension could be extended even further, until the end of next year, and will be discussed again at a special meeting of G20 finance leaders next month at the time of the main summit.
But the Saudi finance minister was critical of some of the private investors holding poorer-country debt who have so far not gone along with the G20 governments’ plans.
“It is about time private investors also participated in the debt suspension. I encourage them to do so,” Al-Jadaan urged.
The official communique of the ministers and governors said they were “disappointed” with the response from the private sector on debt relief.
Al-Jadaan said the finance leaders had considered “all policy options” in their efforts to counter the economic effects of the pandemic — which has sent the global economy into a nosedive — but still needed to do more, especially with regard to emerging countries.
The communique noted that progress toward a “globally fair, sustainable, and modern international tax system” — especially relating to the digital economy — had been impacted by the G20’s focus on pandemic relief.
Member countries have pledged $11 trillion in fiscal and monetary stimulus to counter the pandemic.
Ahmed Al-Kholifey, governor of the Saudi Arabian Monetary Authority (SAMA), told journalists that the Kingdom’s economy had been contracting “like any other” in the first half of the year, but he hoped that the second half would be “less severe.”
He added: “SAMA has used monetary and fiscal tools, and we are seeing some positive numbers now.”
One worry, he admitted, was about the quality of assets within the economy. “We are watching that,” he said.
G20 suspends poorer nations’ debt payments for 6 more months
https://arab.news/jm9n9
G20 suspends poorer nations’ debt payments for 6 more months
- Saudi finance minister urges private sector to participate in debt suspension scheme
- Al-Jadaan said some 73 poorer countries were eligible for debt suspension under the G20 scheme
Saudi Arabia, Estonia strengthen cyber defense cooperation
- Renowned for its leadership in digital governance, Estonia sees cybersecurity as central to its partnership potential with Saudi Arabia, building on years of regional engagement through its technology firms
RIYADH: Estonia aims to deepen defense, cybersecurity, and artificial intelligence cooperation with Saudi Arabia as both nations look to advance technology‑driven defense and cybersecurity capabilities.
Hanno Pevkur, Estonia’s minister of defense, told Arab News at the World Defense Show in Riyadh on Monday that Estonia’s defense industry is eager to contribute to the Kingdom’s fast‑growing defense ecosystem.
“In the modern world, cooperation built on trust and technology is the best defense,” he said. “It is important for us to be here because we clearly see there is a possibility to increase cooperation, not only bilaterally between Saudi Arabia and Estonia, but across the region.”
At Estonia’s pavilion, a cooperation agreement was signed between an Estonian company and a Saudi firm during the show, he noted.
Pevkur also said Estonia’s defense sector has expanded rapidly in recent years, driven by technological innovation and partnership.
“Our defense industry is growing very rapidly, and we continue to see strong momentum,” he said.
He said Estonia’s strengths lie in digital and smart‑system integration rather than large‑scale weapons production.
“We will not build airplanes or tanks, but what we can do is integrate robotics, automation and drones to make existing systems smarter,” he said.
The minister said effective defense collaboration must link businesses and governments to achieve meaningful results.
“When we want to have real cooperation, we need it on all levels,” he said. “The biggest client for any defense company is the government, so we must treat this as one ecosystem where the public and private sectors work hand in hand.”
Renowned for its leadership in digital governance, Estonia sees cybersecurity as central to its partnership potential with Saudi Arabia, building on years of regional engagement through its technology firms.
Pevkur said several Estonian companies, including Nortal, have already assisted Gulf governments in developing open IT and digital‑service systems.
“As the most digitalized nation in the world, almost every service in Estonia can be done online, except getting married,” he said. “But with such digitalization, we also need strong cyberdefense.”
He said data protection and digital resilience are treated as matters of national sovereignty in Tallinn, the capital of Estonia.
“Data is what we own. When someone steals that data, it becomes a serious threat,” he added. “That is why cyberdefense is not just about technology, it is about trust, sovereignty and protection.”
Pevkur said Saudi Arabia’s advances in AI offer promising opportunities for collaboration.
“I know that Saudi Arabia is doing great work when it comes to AI,” he said. “For us, as a small country with limited human resources, AI is essential not just for defense but for everyday life.”
Pevkur added that Estonia has launched a national AI strategy to promote responsible development and closer coordination between government and industry. One Estonian company, he said, has developed a system that allows a single operator to control hundreds of drones through AI.
“It is quite easy to put a weapon into the hands of a robot, but we also need to define who is accountable for its actions,” he said.
“The big question for the future is whether we can allow a war to be fought entirely by AI, or if humans must always make the final ethical decisions.”
He said in his conclusion that governments must reach a common understanding on how AI will be used and regulated on the battlefield.
