World Bank warns G20 against doing too little to tackle debt problems

Hindustan Times | Nov 21, 2020 at 9:54 PM
  • World Bank President David Malpass on Saturday warned G20 leaders that failing to provide more permanent debt relief to some countries now could lead to increased poverty and a repeat of the disorderly defaults seen in the 1980s.
  • Malpass, who began pushing for debt relief early in the Covid-19 crisis, warned that debt challenges were becoming more frequent, including in Chad, Angola, Ethiopia and Zambia, and failure to provide “more permanent debt relief” left a bleak outlook for reducing poverty.
  • G20 leaders are poised to formally endorse extension of a temporary freeze in official bilateral debt payments by the poorest countries, and adoption of a common framework for debt restructuring in the future.