Speaking during the African Session, at the ongoing IMF/World Bank Annual Meetings, in Marrakech, Morocco, IMF African Department Director, Abebe Selassie said 50 percent of total debts in Sub-Sharan Countries are domestic, making debt forgiveness difficult.
He said how the debts will be handed boils down to discussing with creditor nations on the way out of the crisis. The Central Bank of Nigeria and other central banks in many parts of the world kept raising interest rates in order to tackle elevated inflation.World Bank’s Chief Economist Indermit Gill said countries like the US and India are bright spots in the slowing global economy.
He said: “The big problem is that growth is slowing down to a much lower level than we had seen during the crisis. Even countries that are not in debt trouble but have high levels of public debt those debts crowding out private investment.”Banga said he has outlined measures to make the agency bigger, better, and more output-focused, which will give it an incremental lending capacity of $150 billion, 15-20% higher than current levels, over the next decade.