World Bank calls on China to cancel debt to coronavirus-hit countries

The

World Bank

has added its voice to calls for wealthy nations, including China, to cancel debts to poor countries to help them weather

the coronavirus storm

, saying efforts so far were important but inadequate.

Addressing an online event hosted by the Frankfurt School of Finance and Management on Monday, World Bank president David Malpass blamed China for debt distress in some countries and accused it of not taking part fully in the Group of 20

Debt Service Suspension Initiative

(DSSI).

Malpass said the wave of debt troubles in Africa and emerging economies elsewhere was the result of “the rapid growth of new official lenders, especially several of China’s well-capitalised creditors”.

“They have expanded their portfolios dramatically and are not fully participating in the debt rescheduling processes that were developed to soften previous waves of debt,” said Malpass, a former US Treasury official and staunch supporter of US President Donald Trump.

Source: World Bank calls on China to cancel debt to coronavirus-hit countries