WASHINGTON: The World Bank arm that provides help to the poorest countries plans more concessional loans and grants to nations facing higher risks of debt distress, a move that could unlock impasses hindering the restructure of billions of dollars of debt held by low-income nations.
The plans for the lender’s International Development Association (IDA) were announced following a meeting of creditor and debtor nations known as Global Sovereign Debt Roundtable – a forum helmed by the International Monetary Fund (IMF), World Bank and the 2023 Group of 20 (G20) president India to iron out issues with handling debt restructurings for cash-strapped nations.