Economy

World Bank's Chief Calls for Searching Ways Out of Poorest Countries' Debt Impasse

MOSCOW (Sputnik) - A search for ways out of the world's poorest countries impasse in servicing and restructuring their debts will top the agenda of the World Bank Group-International Monetary Fund (IMF) Spring Meetings scheduled for April 10-16, World Bank President David Malpass said on Sunday.
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"At the World Bank Group-IMF Spring Meetings this week, I will be advocating strongly for sound development solutions for the mounting challenges facing developing countries. Resolving the impasse in debt restructurings, especially for the world's poorest countries, is going to be at the center of discussions," Malpass said in his article published by the World Bank.
The World Bank's chief also said that he was looking forward to discussions of the debt crisis and approaches to achieving debt transparency and sustainability.
"I would like to see serious consideration of a debt 'standstill' meaning formal debt service suspension at the request of the debtor country at the beginning of debt restructuring process," Malpass said.
He added that it was important to achieve "transparent, sustainable debt burdens in order to restart investment, which has slowed to a standstill."
On Thursday, IMF Managing Director Kristalina Georgieva said that approximately 15% of low-income countries were experiencing debt distress, and another 45% had high debt vulnerabilities. In total, about a quarter of emerging economies have been at high risk and facing "default-like" borrowing spreads, Georgieva added.
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The 2023 Spring Meetings will take place in person from April 10-16 in the World Bank Group and IMF headquarters in Washington.
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