Poor Country Debt Could Worsen Due to Commodity Prices, Interest Rates: Malpass

CAIRO—The debt situation for poor countries could worsen due to volatile commodity prices and higher interest rates, World Bank President David Malpass said on Thursday, urging countries to begin a gradual fiscal consolidation to maintain investor confidence. As of mid-2021, over half of the world’s poorest countries “are in external debt distress, or at risk of it,” Malpass said in a speech from the Sudanese capital, Khartoum, ahead of World Bank and International Monetary Fund annual meetings in mid-October. “When the debt service suspension or DSSI initiative expires at the end of this year, low income countries that resume debt service payments will see their fiscal space shrink,” Malpass said limiting their ability to buy vaccines and finance other priorities. Malpass repeated his call for accelerated cooperation to implement a G20 debt restructuring framework for poor countries, including from the private sector, which has failed thus far to extend forbearance …

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By Kelly Sanchez

All you guys are warned: Be aware of Granma!

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