World Bank promises 'concessionality' in
debt restructuring
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[February 25, 2023]
BENGALURU (Reuters) -The World Bank will "provide as much
concessionality to the debt treatment" for distressed economies as
possible, its president told a meeting with the International Monetary
Fund, India, China, and other creditor nations on Saturday.
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A participant stands near a logo of World
Bank at the International Monetary Fund - World Bank Annual Meeting 2018
in Nusa Dua, Bali, Indonesia, October 12, 2018. REUTERS/Johannes P.
Christo |
The
remarks come amid calls by China, the world's largest bilateral
creditor, that global lenders should take haircuts on loans
extended to developing nations hurt by the impact of the
Russia-Ukraine war and the COVID-19 pandemic.
The United States, meanwhile, has repeatedly criticised China
over its "foot-dragging" on debt relief for dozens of low-and
middle-income countries.
"The World Bank is committed to providing net positive flows in
a way that maximizes concessionality in the restructuring
process," David Malpass said at the Global Sovereign Debt
Roundtable in India's Bengaluru city on the sidelines of the G20
financial leaders' meet.
"We will provide as much concessionality to the debt treatment
as possible."
Malpass also said that he noted "constructive remarks" by a
deputy China central bank governor at a G20 meeting on Friday
that "gave room to move forward" on settlement of debt issues.
Reuters reported earlier this month that India, the current
president of the G20 bloc, is drafting a proposal for G20
countries to help debtor nations by asking lenders to take a
large haircut on loans.
On Friday, Chinese Finance Minister Liu Kun told the G20
financial leaders that international financial institutions and
commercial creditors should follow the principle of "joint
action, fair burden" in debt settlements.
(Reporting by Shivam Patel; Editing by Krishna N. Das and
Muralikumar Anantharaman)
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