World Bank Chief Warns G-20 Debt-Relief Delay Will Worsen Poverty
- Lack of debt reduction to increase poverty rates, instability
- Malpass says Zambia creditors’ meeting gives ‘sign of hope’
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A lack of progress by the world’s largest economies to reduce the debt burden of the poorest nations as borrowing costs increase will cause worsening poverty rates and instability, World Bank Group President David Malpass said.
“Debt relief is of major importance for the world because the interest rates are going up,” Malpass said in an interview on Bloomberg Television on Tuesday. “The debt was already too burdensome and now the countries are experiencing currency depreciation, which causes inflation.”