The World Bank says countries need to do more to ease the financial burden on developing countries, as the COVID-19 pandemic continues to strain their financial systems.
“The World Bank responded by providing $157 billion to help these countries,” said David Malpass, President of the World Bank Group. He added that the International Debt Statistics show that worldwide debt levels cannot be maintained indefinitely.
“…. Many of them are in the form of grants. There are many interest-free loans and also very low-interest loans to help countries get better development outcomes,” he added.
Malpass said the current system directs resources to developed economies and that it needs to be changed to allow growth of small and medium enterprises, especially in developing countries.
His comments came as the World Bank, International Monetary Fund and Group of 20 countries began their semi-annual meeting in Washington to assess the world economy and financial system. [ps/jm]