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World Bank Chief says G-20 likely to extend debt-suspension plan

The Group of 20 gathering of finance ministers from the world’s largest economies this week is likely to extend debt-service suspension initiative for poorer nations until the end of the year, World Bank President David Malpass said.

The extension of the reprieve in debt-service payments by many of the world’s poorer nations will probably be the final, Malpass told reporters on a call Monday.

The G-20’s Debt Service Suspension Initiative, which took effect last May, delivered US$5B in relief for more than 40 countries in 2020, according to the World Bank. The G-20 last October extended the program, originally set to expire in December 2020, through June, and agreed to consider a further six-month extension later.

Also read: Cabo Verde benefits from World Bank Debt Service Suspension Initiative (DSSI)

The World Bank has made good progress in helping countries through the pandemic, but much work remains to be done to achieve sustainable and broad-based economic growth without harming the environment or leaving hundreds of millions of families in poverty, he said.

“I expect resources will be a challenge,” Malpass said. “I think there will be years of greater need for deeply concessional resources.”

Source: Further Africa

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