World Bank says rich world can cut poor states’ debt without contagion

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By Phil Thornton
17 Dec 2020

Governments and “wealthy” private creditors in advanced and emerging economies can reduce the bilateral debts owed by the world’s poorest countries without triggering an outbreak of financial contagion, David Malpass has said.

The president of the World Bank said there was an urgent need for a new debt resolution process for countries in “deep” debt distress.

This week, he told the International Economic Forum of the Americas (IEFA) that the decision by G20 countries to freeze debt interest payments until ...

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