SEJONG -- An extension of debt relief programs by the Group of 20 major economies will help low-income nations achieve their economic recovery from the coronavirus pandemic, South Korea's finance minister has said.

Finance Minister Hong Nam-ki and his counterparts of G-20 finance ministers agreed to extend the debt relief programs by another six months during their virtual meeting Wednesday.

Under the Debt Service Suspension Initiative (DSSI), the G-20 gave debt relief to poor nations in April.

The debt relief programs had been set to end by the end of this year but were extended until June next year.

"In the short term, an extension of the DSSI is expected to help low-income nations secure fiscal capabilities," Hong said in a statement. "In the mid and long term, it is expected to help them secure fundamentals for an economic recovery."

During the Wednesday meeting, G-20 ministers also agreed on the need to set up comprehensive debt treatment programs beyond the debt relief initiative. (Yonhap)