Debt Warning from the World Bank to G20 Countries

Debt Warning from the World Bank to G20 Countries A debt warning was issued to G20 countries from the World Bank. The bank warned the leaders of the G20 countries to allow for debt suspension. According to the news in Bloomberg HT, the World Bank has warned G20 leaders to provide more debt suspension opportunities. World Bank President David Malpass warned the G20 countries on Saturday to perpetuate their debt delays and pointed out that poverty in the 1980s could recur. Stating that the G20 leaders are satisfied with their progress in terms of debt transparency and debt suspension opportunities provided to poor countries, Malpass said more is needed. Stating, “Debt reduction and transparency will enable productive investments and lay the foundation for stronger and sustainable recovery,” Malpass said: “We have to fight against taking too little action now, or we might suffer from a debt restructuring like the 1980s and an erratic wave of defaults.” The 1980s were also known as 'lost years', as Latin America and other countries could not pay their debts and growth slowed down. Stating the issue of deferring debt since the outbreak of the new type of coronavirus (Covid-19) began, Malpass stated that countries such as Chad, Angola, Ethiopia and Zambia are facing more and more difficulties in paying debts.       Source: Bloomberg HT