World Bank President David Malpass said at a meeting with the International Monetary Fund, India, China and other creditor countries on Saturday that the bank would "provide as much debt relief as possible" to troubled economies.

These statements come amid calls from China - the largest bilateral creditor in the world - that global lenders should reduce the value of loans granted to developing countries affected by the impact of the Russian-Ukrainian war and the Corona pandemic (Covid-19).

In contrast, the United States has repeatedly criticized China for being "slow" in providing debt relief for dozens of low- and middle-income countries.

"The World Bank is committed to providing positive net flows in a way that increases facilitation in the restructuring process," Malpass said, at a meeting on global sovereign debt in the Indian city of Bangalore on the sidelines of the G20 financial leaders meeting. ".

For her part, the Director of the International Monetary Fund, Kristalina Georgieva, said - yesterday, Saturday, on the sidelines of the G20 meeting - that there are some differences regarding debt restructuring for troubled economies.


She referred to talks on a round table to discuss the issue of global sovereign debt, taking into account all creditors from the public and private sectors.

India - the current chair of the Group of Twenty - is drafting a proposal for the group's countries to help debtor countries by asking lenders for a significant reduction on loans.

Africa debt

A report by the British Financial Times indicates that the countries with the largest debt burdens today owe more than 70% of their obligations to domestic private investors, international bondholders and not-so-rich countries, such as China, India and Turkey.

The report says that external debt in Africa today exceeds $700 billion, amid campaigns to cancel these debts from the poor countries most affected, and adds that between 2000 and 2015, large parts of the total debt of 31 African countries out of 36 beneficiary countries were canceled.

However, the author of the report finds it strange to launch new debt cancellation campaigns that ignore the lessons learned from previous rounds of debt relief and their impact on economic transformation and growth, and considers that some African countries are not eligible to join the Heavily Indebted Poor Countries Initiative.

He said that while it was emotionally appealing, debt cancellation alone would not encourage or strengthen efforts to demand stronger accountability and enforce institutional reforms.


The total debt owed by the public and private sectors and by foreign lenders in African countries exceeded nearly $1 trillion in 2021.

Of the continent's total external debt, South Africa owns 15%, Egypt 13%, Nigeria 7%, Angola 7%, Morocco 6%, Sudan 6%, Tunisia 4%, Kenya 4%, and Zambia 4%.

There are 10 African countries whose debt exceeds about 75% of GDP, namely Djibouti, Angola, Mozambique, Rwanda, Sudan, Tunisia, Zambia, Seychelles, Cape Verde and Mauritius.

World Bank data indicate that about 60% of the world's poorest countries are either already in a critical debt situation or are exposed to high risks that bring them to the critical stage, warning that many developing countries may also be unable to service their debts, in light of the repercussions of the crisis. Corona, and the Russian-Ukrainian war.

Globally, the total global debt rose to more than $300 trillion in the second quarter of 2022, and the global debt ratio approached 350% of GDP during the same period.