The World Bank guarantees “concessional” on debt.
It comes as Beijing requests that international lenders reduce lending amounts.
BENGALURU:
At a conference on Saturday with the International Monetary Fund (IMF), India, China, and other creditor countries, the World Bank’s president said that the organization would “give as much ‘concessionality’ to the debt treatment” for struggling economies.
The comments follow requests from China, the largest bilateral creditor in the world, that international lenders should reduce the number of loans given to poor countries that have been negatively impacted by the impact of the Russia-Ukraine war and the Covid-19 outbreak. Meanwhile, China has come under fire from the United States for “foot-dragging” on debt relief for numerous low- and middle-income nations.
David Malpass stated at the Global Sovereign Debt Forum in India’s capital: “The World Bank is dedicated to providing net positive flows in a way that maximizes concessionality in the restructuring process.”
