World Bank President David Malpass expects private creditors to work out a methodology to join the Group of 20 in providing debt relief for the world’s poorest economies to help them fight the global pandemic.
The G-20 in April agreed to allow a temporary suspension of debt repayment for more than 70 impoverished nations. Some private lenders have been reluctant to do the same, citing concerns over rating downgrades and fiduciary obligations. The Institute of International Finance estimates that the world’s poorest nations have some $140 billion in general government debt-service obligations due through the end of the year.
