Background

- Public debt in emerging markets has surged to levels not seen in 50 years, and many developing countries have increasingly taken on debt on non-concessional terms—from private lenders and non-Paris Club members.

- As the COVID-19 pandemic wreaks havoc on the global economy, poorer countries who will be hardest hit by the virus will also face a debt crisis.

- Debt service suspension is a powerful, fast-acting measure that can bring real benefits to people in poor countries, particularly countries that don’t have the financial resources to respond to the coronavirus (COVID-19) crisis.

- With the encouragement of the WBG, IMF and others, G20 economies are allowing the world’s poorest countries to suspend repayment of official bilateral credit on May 1. This initiative will do much to safeguard the lives and livelihoods of millions of the most vulnerable people.

- The G7 has also indicated that it would suspend debt obligations of the poorest countries.

How the World Bank is Helping […]