world Bank President David Malpass made evaluations at the video conference event titled “Combating inequality caused by the Covid-19 epidemic to achieve a green, inclusive and resilient recovery” organized by the London School of Economics (LSE) before the IMF-World Bank Spring Meetings to begin on April 5. was found.
Stating that responses to poverty, climate change and inequality will be the decisive choices of the age, Malpass emphasized that solutions that ensure sustainable and broad-based economic growth without damaging the climate, disrupting the environment or leaving hundreds of millions of families in poverty should be urgently implemented.
Noting that poor countries are struggling with record-high debt burdens, Malpass said that the G20 Debt Service Suspension Initiative enabled 43 countries to postpone debt payments of about $ 5.7 billion in May and December last year, but up to $ 7.3 billion more. noted that savings are expected.
“G20 COUNTRIES NEED TO GIVE INSTRUCTIONS AND INCENTIVE”
Malpass stated that debts were less than expected due to the absence of all creditors, and that large creditors outside the Paris Club partially participated in the initiative, while bondholders and private creditors continued to collect debt payments throughout the crisis.
Pointing out that recent experience shows that commercial creditors will not abide by calls for “voluntary participation” in debt deferral initiatives, Malpass shared the following views:
“G20 countries are required to instruct and establish incentives for all public bilateral creditors, including national policy banks, to participate in debt deferral efforts. In addition, they should force private creditors in their jurisdictions to participate fully in government debt relief efforts for low-income countries. must.”
Referring to the measures that should be taken into account by G7 countries to encourage greater participation, Malpass said, “The G20 Debt Service Suspension Initiative will once again be extended until the end of 2021, as many countries are still struggling with Covid-19 and experiencing liquidity shortages. I believe it should be, “he said.