KTFA:
Henig: World Bank promises easing in structuring the debt of troubled economies
Economy News – Baghdad
World Bank President David Malpass said in a meeting with the International Monetary Fund, India, China and other creditor countries on Saturday that the World Bank would “provide as much ease as possible in addressing debt” to struggling economies.
The comments come amid calls from China, the world’s largest bilateral creditor, for global lenders to reduce the value of loans to developing countries affected by the impact of the Russia-Ukraine war and the Covid-19 pandemic.
Meanwhile, the United States has repeatedly criticized China for being “slow” in relieving debt relief for dozens of low- and middle-income countries.
The World Bank is committed to providing positive net flows in a way that further facilitates the restructuring process,” Malpass said at a meeting on global sovereign debt in Bengaluru, India, on the sidelines of the G20 Financial Leaders’ Meeting.
“We will provide as much facilitation as possible to tackle debt.”
Malpass also said he referred to the “constructive statements” of China’s deputy governor at Friday’s G20 meeting that “gave room to move forward” in settling debt issues.
Reuters reported earlier this month that India, the current G20 chairman, was drafting a proposal for G20 countries to help debtor countries by asking lenders to significantly reduce loans. LINK
