World Bank chief hails G20 debt relief progress
World Bank Group President David Malpass said on Saturday he was very happy to see the progress made by the Group of 20 (G20) on transparency and debt relief.
“These are important and positive steps for development, and I was pleased to see constructive responses from major creditors,” Malpass said in remarks at the G20 summit hosted by Saudi Arabia via video conference. November 21 and 22.
The G20 approved the Debt Service Suspension Initiative (DSSI) in April to help poorer countries in response to the COVID-19 pandemic. The DSSI was extended in October for another six months.
Last week, G20 finance ministers and central bank governors pledged to engage in close coordination with DSSI, saying maximum support would be provided to countries eligible for DSSI.
Chinese President Xi Jinping said on Saturday that the country supports a G20 decision on extending the DSSI and will continue to fully implement it with other parties.
“President Xi’s pledges and announcements from last week are useful and welcome,” Malpass said at the virtual summit.
“Debt reduction and transparency will enable productive investments, a key to achieving a faster, stronger and more sustainable recovery,” said the head of the World Bank, adding that “more needs to be done”.
Malpass noted that debt challenges are increasingly prevalent, particularly in Chad, Angola, Ethiopia and Zambia where, in the absence of more permanent debt relief, “the outlook for poverty remains. dark “.
“We need to avoid doing too little now and then enduring disorderly defaults and repeated debt restructurings like in the 1980s,” he said.