© Flickr / Shiny ThingsWorld Bank headquarters in Washington DC
WASHINGTON, Apr 9 – Finding ways out of the “dead end” of the world’s poorest countries in servicing and restructuring their debts will be the central topic of discussion by World Bank President David Malpass at the organization’s upcoming spring session, he wrote on Sunday.
According to Malpass, he intends to discuss the problem of the debt crisis at events with the participation of the finance ministers of India, Ethiopia, Jamaica, as well as with the managing director of the International Monetary Fund Kristalina Georgieva.
“I would like to see a serious discussion of the debt deadlock, namely the formal suspension of debt service at the request of the debtor country at the beginning of the debt restructuring process,” the World Bank president added.
As Malpass pointed out, creditors are currently spending vital months discussing issues that need to be agreed in advance, including steps on the debt restructuring process and timing.
“It is important for us to make progress: countries need transparency, sustainable debt burdens to resume investment, slowing due to the impasse,” he added.
Earlier, IMF Managing Director Kristalina Georgieva reported that among low-income countries, 15% already have debt problems, and another 45% are vulnerable to the problem of large debts. Such complexities, she noted, raise concerns about a potential wave of requests for debt restructuring.