Nigeria and other developing countries will be granted debt relief by China and the G-20 countries, the World Bank has said. The beneficiary countries which are classified as International Development Association (IDA) countries by the World Bank will get the relief if they ask for it, the bank said.
This is according to comments made by David Malpass, the World Bank president, at the ongoing virtual April 2020 virtual Spring meetings of the World Bank and International Monetary Fund. “I take note that in the G-20 meetings, China is supporting the international agreement to allowing moratorium of debt repayments by IDA countries if they ask for forbearance.
“IDA countries will have bilateral debt relief beginning May 1. That way, they can concentrate their resources on fighting the pandemic and its economic and social consequences”, Mal pass said.
IDA countries are those with per capita income below an established threshold. The 2020 threshold is $1,175.
Countries, such as Nigeria and Pakistan, are IDA-eligible based on per capita income levels and are also credit worthy for some the International Bank for Reconstruction and Development ( IBRD) borrowing. They are referred to as ‘blend’ countries.
SOURCE: DAILY TRUST