The World Bank President David Malpass said on Wednesday that the bank is calling for an additional $25 billion in emergency financing to help the world's poorest countries tackle the massive challenges of the pandemic.
Malpass told finance ministers and central bank governors of the G20 countries, during an annual meeting on debt that he will propose a supplemental financing package to the International Development Association (IDA), one of the World Bank arms to help relief debt for the world’s poorest nations.
He stressed concerns about the increased risk of 'disorderly defaults' among low-income countries, adding that the Bank and the International Monetary Fund (IMF) had proposed a joint action plan to assist the IDA countries with the highest debt.
The World Bank president noted that greater debt transparency can help poor countries attract high-quality investment while achieving sustainable debt levels.
One of the main topics raised at the event that many speakers agreed with is that developing countries will need a long-term debt reduction or resolution in the face of COVID-19.
The current debt suspension organized by the G20 does not give countries the certainty they need. Nor does it force the private sector to work with developing countries to reduce or reduce debt.
More transparency about how much governments borrow, for what reasons and who is critical to finding effective solutions.
About 76 countries, including 40 in sub-Saharan Africa, are eligible for debt payments.
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