Group Protests Global Rising Debt At World Bank, IMF Headquarters, Calls For Cancellation

…Says Countries Economically Strangled By Massive Debts Instruments Imposed By IMF, World Bank

WASHINGTON DC: There was protest on Friday at the headquarters of the World Bank Group and that of the International Monetary Fund located in Washington DC, United States over the rising debts in the countries across the world.

THE WHISTLER observed that the protesters took over part of the streets where the World Bank and IMF headquarters is located in Washington DC, the United States.

The protest started very early in the morning on Friday and was still ongoing as of 9:14am when this report was filed.

The Group is calling for Ministers and delegates of the IMF and the World Bank to save the world from a bleak future which is being threatened by the rising debt.

In a flier which was obtained by THE WHISTLER from one of the group leaders, it said that Global South countries are economically strangled by massive debts instruments imposed by the IMF and the World Bank as well as institutions controlled by wealthy countries.

It said, “Debt-trap diplomacy puts Global-South nations at the mercy of multinational predators who push fossil fuel extraction, mining and deforestation.

“Continuation of fossil fuel extraction and land misuse is causing climate and ecological catastrophes for people everywhere.

“Cancelling the debt will free countries to spend on green energy and public services, leaving fossil fuels in the ground.

“Debt for climate demands and the unconditional cancellation of the illegitimate debts of the Global South. Cancel the debt for people and planet.”

The protest us coming exactly four days after the International Monetary Fund said that the rising debt levels among countries is currently limiting their ability to respond to new economic challenges.

The IMF Director of Research Department, Pierre-Oliver Gourinchas said these while releasing the World Economic Outlook report.
The Federal Government spent 41 per cent of the revenue generated in 2022 to service its over N46trn debt.
Recently, Moody’s Investors, a US-based credit rating agency downgraded Nigeria’s sovereign debt from B3 to Caa1 over weak oil revenues.
Nigeria’s total public debt as at December 31, 2022, consisting of the domestic and external debt stocks of the Federal Government and the 36 State Governments and the Federal Capital Territory rose to N46.25trn or $103.11bn.
The total public debt to Gross Domestic Product ratio for December 31, 2022, was 23.20 per cent and indicates a slight increase from the figure for December 31, 2022, at 22.47 per cent
The ratio of 23.20 per cent is still within the 40 per cent limit self-imposed by Nigeria, the 55 per cent limit recommended by the World Bank/international Monetary Fund, and, the 70 per cent limit recommended by the Economic Community of West African States.

The IMF Director of Research Department, Pierre-Oliver Gourinchas said that the global economy would witness a decline in global growth rate from 3.4 percent in 2022 to 2.8 percent in 2023.

He said, “Debt levels remain high, limiting the ability of fiscal policymakers to respond to new challenges. Commodity prices that rose sharply following Russia’s invasion of Ukraine have moderated, but the war continues, and geo-political tensions are high.
“Infectious COVID-19 strains caused widespread outbreaks last year, but economies that were hit hard—most notably China—appear to be recovering, easing supply-chain disruptions.”