WBG, IMF seek postponement on debt repayments by developing countries.
Washington: The World Bank Group (WBG) and the International Monetary Fund (IMF) have asked all G20 states to suspend the debt repayments owed to them by developing countries, a news source reported. As per the publication, the banks have sought this relief to facilitate the poor countries in their battle against the coronavirus pandemic.
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It is expected that the International Development Association (IDA) countries would face severe social and economic repercussions, the joint statement issued by WBG and IMF stated. The two leading lenders said that the suspension of the debt payments would facilitate urgent liquidity and financing needs, and assist the IDA countries to confront the novel coronavirus.
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The WBG and IMF invited the G20 leaders to identify the countries with unsustainable debt conditions and asked the bilateral creditors to formulate a proposal for a comprehensive action plan to deal with the debt and financing needs of the IDA countries.
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In response, the Federal Minister of Economic Affairs Hammad Azhar lauded the joint statement by the WBG and IMF and urged that relief on debts should be granted.