World Bank Group and IMF Call to Action on Debt of IDA Countries

  • The coronavirus outbreak is likely to have severe economic and social consequences for International Development Association (IDA) countries, home to a quarter of the world’s population and two-thirds of the world’s population living in extreme poverty.
  • With immediate effect—and consistent with national laws of the creditor countries—the World Bank Group and the International Monetary Fund call on all official bilateral creditors to suspend debt payments from IDA countries that request forbearance.
  • This will help with IDA countries’ immediate liquidity needs to tackle challenges posed by the coronavirus outbreak and allow time for an assessment of the crisis impact and financing needs for each country.
  • The World Bank Group and the IMF believe it is imperative at this moment to provide a global sense of relief for developing countries as well as a strong signal to financial markets. The international community would welcome G20 support for this Call to Action.

(Source: The World Bank)