World Bank President tells China, Wealthy nations to cancel debts to poor countries

Srinagar, October 08:  World Bank President David Malpass has called upon wealthy nations, including China, to cancel debts to poor countries to help them withstand the impact of coronavirus, saying efforts made so far were important but inadequate, All India Radio (AIR) reported.

Addressing an online event hosted by the Frankfurt School of Finance and Management, World Bank president blamed China for worsening debt situation in some poor countries and accused it of not taking part fully in the Group of 20 Debt Service Suspension Initiative (DSSI), the report said.

AIR Prasar Bharati Special Correspondent in Beijing reported that World Bank President called China’s well-capitalised creditors, an added factor in current wave of debt troubles in world’s poorest countries.

He lamented that Chinese lenders have expanded their portfolios dramatically and are not fully participating in the debt rescheduling processes.

Japan, few days ago, urged Group of Seven (G7) advanced economies to put more pressure on Beijing to abide by G-20 led Debt Service Suspension Initiative for poor countries.

World bank has also called other wealthy nations to participate in this scheme.

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