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Washington, U.S, March 25, 2020//-The World Bank Group (WBG) and International Monetary Fund (IMF) today called on all official bilateral creditors to immediately suspend debt payments from IDA countries that request forbearance as they struggle to contain the spread of the coronavirus disease 2019 (COVID-19).
According to a joint statement issued by the two institutions, it said the call is in consistent with national laws of the creditor countries.
The statement which is directed at the G20 concerning debt relief for the poorest countries, said the coronavirus outbreak is likely to have severe economic and social consequences for IDA countries, home to a quarter of the world’s population and two-thirds of the world’s population living in extreme poverty”.
“This will help with IDA countries’ immediate liquidity needs to tackle challenges posed by the coronavirus outbreak and allow time for an assessment of the crisis impact and financing needs for each country”, the statement noted.
“We invite G20 leaders to task the WBG and the IMF to make these assessments, including identifying the countries with unsustainable debt situations, and to prepare a proposal for comprehensive action by official bilateral creditors to address both the financing and debt relief needs of IDA countries.
We will seek endorsement for the proposal at the Development Committee during the Spring Meetings (April 16/17)”.
The World Bank Group and the IMF believe it is imperative at this moment to provide a global sense of relief for developing countries as well as a strong signal to financial markets. The international community would welcome G20 support for this Call to Action.
African Eye Report
