World Bank President expects G20 countries to extend debt moratorium on poorest countries until the end of the year, at their meeting this week on the sidelines of spring meetings from the IMF and the World Bank.
“In October, I called (the G20 countries) for a one-year extension” of their Debt Service Suspension Initiative (DSSI) which was launched in the spring of 2020 amid the spread of the global pandemic, World Bank boss David Malpass recalled on Monday during a conference call with reporters.
But the G20 had finally agreed to a six-month extension, until June 30, 2021.
The G20, which meets on Wednesday, could decide to extend the initiative “until the end of this calendar year with clear direction that this will be the last extension,” added David Malpass.
The objective of this moratorium is to allow countries to use this money to support their economies.
David Malpass acknowledged that debt relief would be needed in the longer term to allow the poorest countries to reduce their debt burden to a more moderate level.