World Bank Arm to Boost Loans to Nations Facing Debt Distress
- IDA’s move could open way for more sovereign debt restructures
- Debt Roundtable aimed at ironing out Common Framework issues
The World Bank Group headquarters in Washington, DC.
Photographer: Samuel Corum/BloombergThe World Bank arm that provides help to the poorest countries plans more concessional loans and grants to nations facing higher risks of debt distress, a move that could unlock impasses hindering the restructure of billions of dollars of debt held by low-income nations.
The plans for the International Development Association were announced Wednesday following a meeting of creditor and debtor nations known as Global Sovereign Debt Roundtable — a forum helmed by the International Monetary Fund, World Bank and the 2023 Group of 20 president India to iron out issues with handling debt restructurings for cash-strapped nations. Those include sticking points in the G-20’s own so-called Common Framework on tackling debt relief.