(Ecofin Agency) - The President of the World Bank Group, David Malpass (pictured), has urged G-20 countries to suspend bilateral debt repayment for the poorest countries. The announcement was made on March 23 during the G20 Finance Ministers' Conference on the Covid-19.
“The Coronavirus crisis will likely hit hardest against the poorest and most vulnerable countries. Many were already in a difficult debt situation, leaving no space for an appropriate health and economic response [...] however, we cannot have IDA resources go to pay creditors,” he said, urging the Group of Twenty to act with immediate effect to allow the poorest to concentrate their resources on fighting the pandemic.
“I’m calling on the G20 leaders to allow the poorest countries to suspend all repayments of official bilateral credit, until the World Bank and the IMF (International Monetary Fund) have made a full assessment of their reconstruction and financing needs,” the World Bank’s President concluded.