World Bank observes creditor willingness to suspend debt payments for poorest nations

The World Bank has observed significant willingness from official bilateral creditors, including the G7 and G20 major economies, to suspend debt payments for the world's poorest nations.

China has urged the World Bank to lead by example and allow its poorest borrowers to suspend debt payments amid the coronavirus pandemic.

The G20 has agreed to suspend bilateral official debt service payments for the poorest countries through the end of the year, a move expected to free up over $20 billion.

Hundreds of private creditors have also matched the G20's debt suspension initiative.

The World Bank and IMF are disbursing emergency aid and have initiated debt relief grants to the poorest member countries.

The IMF is advocating for donor countries to increase funding for its Catastrophe Containment and Relief Trust to extend debt relief for a full two years.