World Bank President, David Malpass, on Friday said China and G-20 countries have agreed to give debt relief to poorest countries in the world classified as IDA countries by the financial institution.
Malpass made this known at the ongoing virtual April 2020 virtual Spring meetings of the World Bank and International Monetary Fund.
The World Bank had since 1958 been providing Nigeria with low interest rate loans through the International Development Association and International Bank for Reconstruction and Development .
Malpass said, “IDA countries will have bilateral debt relief beginning May 1. That way, they can concentrate their resources on fighting the pandemic and its economic and social consequences.
“I take note that in the G-20 meetings, China is supporting the international agreement to allowing moratorium of debt repayments by IDA countries if they ask for forbearance.
“That’s very important because China is one of the biggest creditors and their participation in that effort is important and was very welcome.”
Countries under the International Development Association are those with per capita income below an established threshold.
The 2020 threshold is $1,175.
Countries such as Nigeria and Pakistan are IDA-eligible based on per capita income levels and are also creditworthy for some IBRD borrowing.