World Bank, IMF request all official bilateral creditors to suspend debt payments from developing nations

COLOMBO (News1st): The World Bank and the International Monetary Fund (IMF) have requested all official bilateral creditors to suspend debt payments from developing nations to help face COVID-19 outbreak. In a joint statement to the G20, the World Bank and IMF said the COVID-19 outbreak is likely to have severe economic and social consequences for the 76 countries in the International Development Association (IDA). The IDA is home to a quarter of the world’s population and two-thirds of the world’s population living in extreme poverty. The statement also called on all official bilateral creditors to suspend debt payments from IDA countries with immediate effect and consistent with national laws of the creditor countries. Bolivia, Sri Lanka, and Vietnam graduated from IDA at the end of 2017, however global lending agencies said these 3 countries can receive transitional support on an exceptional basis. The statement states, the suspension of debt payment, will help with IDA countries’ immediate liquidity needs to tackle challenges posed by the coronavirus outbreak and allow time for an assessment of the crisis impact and financing needs for each country. The statement further notes that an endorsement for the Proposal is expected at the Development Committee during the Spring Meetings from April 16th to 17th.