Nigeria, 76 Other IDA Countries Can Apply For Debt Relief – World Bank President

Nigeria and 76 otherInternational Development Association (IDA) countries can apply for debt relief as China is supporting the G20 countries to grant debt relief  to member countries, World Bank President, David Malpass said. 
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A data from the Debt Management Office shows that Nigeria’s debt to the IDA is $9.69 billion, while it owes the International Bank for Reconstruction and Development (IBRD) $409.5 million.The country also owes China $3.175 billion.

Malpass said on Friday in a virtual meeting with the International Monetary Fund (IMF) that, “It takes note that in the G20 meetings, China is supporting that international agreement to allow moratorium of debt repayment by IDA countries if they ask for forbearance.”

He added that, “IDA countries will have bilateral debt relief beginning from May 1. That way, they can concentrate their resources on fighting the pandemic and its economic and social consequences.

“That’s very important because China is one of the biggest creditors and their participation in that effort is important and was very welcome.

“It’s not the best system for creditors to be making non-transparent loans into poor countries and this is going to improve the system,” he said. 

He said that, if the government saves money by not paying creditors, there is an expectation that they use it for health, education, economic rebuilding, jobs and concrete ways to help the people of their country.

The bank urged those benefiting from the moratorium to be transparent in spending, adding that the debt relief initiative would be monitored.

Malpass also said a process which would ensure grants and fair loans would be given to developing countries would be put in place.