World Bank to Allocate $150 Bln to Developing Countries

World Bank President David Malpass has announced that his institution could allocate up to $150 billion over the next 15 months to help developing countries fight and recover from the Coronavirus pandemic.

In a statement to the finance ministers and central banks' governors of the G20 countries, Malpass called the creditor countries to let poorest countries suspend all repayments of official bilateral credit due to the adverse impact on their economies due to the coronavirus pandemic.

He said the poorest countries should be allowed to focus their resources, instead, on health measures to counter the impact of the crisis.

Malpass said that the bank is currently preparing projects in 49 countries to help fight the virus under a new fast-track credit facility, and decisions are expected this week on up to 16 projects.

He added that the bank is consulting with China and other major countries to get assistance for the rapid industrialization and delivery of many of the medical supplies that countries need.

On the other hand, Reuters quoted multiple sources as saying that the leaders of the G20 will hold a conference call on Thursday to discuss the spread of the Coronavirus, amid criticism that the group has slowly reacted to the global crisis.

The group’s finance ministers and central bank governors agreed during a virtual conference call yesterday to develop a "business plan" to deal with the crisis which the International Monetary Fund expected to result in a global recession.

Earlier, UN Secretary-General Antonio Guterres announced that the world body wanted two billion dollars to help poor countries tackle the Coronavirus. He also warned of the need for a huge and coordinated package to deal with the social and economic impacts of the epidemic around the world.

"The package must make families ... companies, and societies able to stand up steadily," Guterres told a conference call. "We need much stronger coordination."

Guterres said that he had written this in a letter to the G20 and would join the group's meeting scheduled imminently.