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World Bank and IMF urge immediate debt relief for poor countries

26 March 2020 13:14

WASHINGTON - The World Bank and the International Monetary Fund (IMF) have urged bilateral creditors to provide immediate debt relief for the world’s poorest countries amid the coronavirus (Covid-19) pandemic.

As reported by Reuters, the two institutions have released a joint statement calling on bilateral creditors to immediately suspend debt payments from countries receiving support from the International Development Association (IDA). Most of the 76 countries have gross national income per capita of below US$1,175.

“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,” said the IMF and the World Bank.

Suspending debt payments, they added, will provide “a global sense of relief for developing countries” and a strong signal to financial markets. In addition, G20 has also been urged to support the initiative.

G20 leaders are scheduled to hold a virtual summit on Thursday (26/3) to discuss further actions to respond to the Covid-19 pandemic, which include identifying countries with unsustainable debt situations. (MS)

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