World Bank promises debt ‘concessionality’

It comes as China asks global lenders to take haircuts on loans

BENGALURU:

The World Bank will “provide as much ‘concessionality’ to the debt treatment” for distressed economies as possible, its president told a meeting with the International Monetary Fund (IMF), India, China, and other creditor nations on Saturday.

The remarks come amid calls by China, the world’s largest bilateral creditor, that global lenders should take haircuts on loans extended to developing nations hurt by the impact of the Russia-Ukraine war and the Covid-19 pandemic. The United States, meanwhile, has repeatedly criticised China over its “foot-dragging” on debt relief for dozens of low- and middle-income countries.

“The World Bank is committed to providing net positive flows in a way that maximises concessionality in the restructuring process,” David Malpass said at the Global Sovereign Debt Roundtable in India’s Bengaluru city on the sidelines of the G20 financial leaders’ meet. “We will provide as much concessionality to the debt treatment as possible.

Published in The Express Tribune, February 26^th, 2023.

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