David Malpass, World Bank president, says G-20 countries may
extend debt service suspension till December.
He said a decision will be taken at the group of 20
gathering this week.
The G-20, is a group of finance ministers and central bank
governors from 19 of the world’s largest economies, including those of many
developing nations, along with the European Union.
G-20 countries had established a debt service suspension
initiative (DSSI) which took effect in May 2020.
According to the World Bank and International Monetary Fund
(IMF), the DSSI is meant to help countries concentrate their resources on
fighting the coronavirus pandemic and safeguarding lives.
Nigeria had benefited from the initiative which delivered
about $5 billion in relief to more than 40 eligible countries.
In all, 73 countries are eligible for a temporary suspension
of debt-service payments owed to their official bilateral creditors.
The suspension period which was originally set to end on
December 31, 2020 was extended to June 2021.
Speaking with reporters Monday, Malpass said the extension
to end of 2021 will probably be the final.
He said the extension will help in saving more money that
countries could use to combat COVID-19 and support their economies.
The World Bank chief added that actual debt relief would
also be needed to allow poorest countries bring their debt burdens to a more
moderate level.
“I expect resources will be a challenge. I think there will
be years of greater need for deeply concessional resources,” he said.
Recently, Ngozi Okonjo-Iweala, director-general of the World
Trade Organisation (WTO), said multilateral debt relief for low-income
countries will boost investment and trade globally.
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