World Bank chief calls on China to cancel debt to coronavirus-hit poor countries
- Well-capitalised Chinese creditors are adding to woes in Africa and elsewhere, David Malpass says
- No light at the end of the debt tunnel, he says
Malpass said the wave of debt troubles in Africa and emerging economies elsewhere was the result of “the rapid growth of new official lenders, especially several of China’s well-capitalised creditors”.
“They have expanded their portfolios dramatically and are not fully participating in the debt rescheduling processes that were developed to soften previous waves of debt,” said Malpass, a former US Treasury official and staunch supporter of US President Donald Trump.
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To starve or get sick: Africa’s lockdown dilemma amid the coronavirus pandemic
The G20 countries launched the DSSI in April, offering a debt payment moratorium between May 1 and end of the year to 73 low-income countries, mostly in Africa and some in Asia, hit by the coronavirus pandemic.