INSUBCONTINENT EXCLUSIVE:
WASHINGTON: World Bank Group President David Malpass on Friday said he was confident of progress on his joint call with the International
LinkedIn.
The World Bank and the IMF first issued their call for debt relief on March 25
[nL1N2BI15A] The initiative won significant backing over the past week, including from the Institute of International Finance, a group that
represents over 450 global banks, hedge funds and other financial firms
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The proposal calls for China and other big creditors to suspend debt payments from International Development Association (IDA)
countries beginning May 1, freeing up resources for them to fight against the pandemic
poverty.
Malpass said the proposal was discussed twice this week during working-level meetings of the G20, and would be on the agenda during
virtual ministerial level meetings next week.
Two sources familiar with the discussions said G20 finance officials were likely to endorse
the proposal when they meet online on April 15
The issue is particularly critical for G20 member China, which has sharply increased lending to developing countries over the past two
infrastructure projects, according to data from Johns Hopkins University
By some estimates, Chinese lending now dwarfs World Bank loans in Africa.
Malpass said borrowers that requested forbearance would be
In return for the suspended payments, beneficiary countries would commit to debt transparency and agree to direct additional resources
toward health and economic needs, he said.
He said the World Bank and IMF would work closely with IDA countries and creditors to evaluate
countries faced official bilateral debt service obligations of $14 billion through the end of 2020.
