"It is evident that some countries are unable to repay the debt they have taken on. We must therefore also reduce the debt level. This can be called debt relief or cancellation," Malpass told"It is evident that some countries are unable to repay the debt they have taken on": World Bank chief David Malpass."It is important that the amount of debt is reduced by restructuring," Malpass added.
He pointed to similar steps in previous financial crises such as in Latin America and the so-called HIPC initiative for highly indebted countries in the 1990s.Rich countries last month backed an extension of the G20's Debt Service Suspension Initiative , approved in April to help developing nations survive the coronavirus pandemic, which has seen 43 of a potential 73 eligible countries defer $US5 billion in "official sector" debt payments.
"These investors are not doing enough and I am disappointed with them. Also, some of the major Chinese lenders did not get enough involved. The effect of the aid measures is therefore less than it could be," the World Bank head said. Malpass warned that the pandemic could trigger another debt crisis as some developing countries had already entered a downward spiral of weaker growth and financial trouble.
"The enormous budget deficits and debt payments are overwhelming these economies. In addition, the banks there are getting into difficulties due to bad loans," Malpass added.A concise wrap of the day on the markets, breaking business news and expert opinion delivered to your inbox each afternoon. Sign up for
The World Bank was set up so the rich countries, the USA basically, could control poor and poorer countries. I am glad the CEO is asking for cancellation of debt.
Jubilee year.
Was done not that long ago, pushed by British PM Gordon Brown. Now you want to cancel the debts again?
The world is technically bankrupt. Want debt cancellation? Get in line.
China have been getting huge loans at zero interest to expand their slave empire. It's happening on a global scale now
This is braindead.
what to say about the world bank...how about stop funding slave masters in China !
Sue0606 Debt is like money. It doesn't actually exist, except as electrons in an account. It can be cancelled at a single keystroke. Yet we allow these fiction to destroy people, landscapes, nations, our civilization. We need money that is real.
WHO, exactly, do WE *owe* the money to? Are WE the *cause* of our main challenges?
Ask China to foot the bill
So you think China will cancel all its LOANS or start WW111?
WhosFibbing No way
Help us first pal.