Via IMF (Den Internationale Valutafond)

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

March 25, 2020

Washington, DC The World Bank Group and International Monetary Fund
have issued the following joint statement to the G20 concerning debt
relief for the poorest countries:

The coronavirus outbreak is likely to have severe economic and social
consequences for

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.

We invite G20 leaders to task the WBG and the IMF to make these
assessments, including identifying the countries with unsustainable debt
situations, and to prepare a proposal for comprehensive action by official bilateral creditors to address both the financing and debt relief needs of
IDA countries. We will seek endorsement for the Proposal at the Development
Committee during the Spring Meetings (April 16–17).

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.

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