The president of the World Bank (WB), David Malpass, urged China, one of the main creditors of poor countries, to participate “fullyIn debt relief efforts.
“Many countries now face record levels of foreign and domestic debt as interest rate hikes begin”Said the head of the Washington-based institution.
About 60% of low-income countries are “at high risk“Of over-indebtedness, while emerging markets”they are also in trouble“, he pointed.
“In 2022 alone, countries will have to pay around US $ 35 billion in debt service to their official bilateral and private sector creditors, with more than 40% of that owed to China.“Malpass specified.
“It is crucial that China fully participates in international debt relief efforts”, He pointed.
Malpass asked to accelerate the implementation of the “common frame”For the debt restructuring of the G20 group of nations, which was created in November 2020 to provide debt relief, or even cancellation, to countries that request it.
That program was created to succeed the Debt Service Suspension Initiative (DSSI), which the G20 instituted at the beginning of the COVID-19 pandemic to give poor countries a moratorium on debt service payments until The end of 2020, although it ended up being extended until the end of 2021.
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