World Bank to boost loans to nations in debt

Credit relief: World Bank president David Malpass is seen at the World Bank/IMF Spring Meetings in Washington. The discussions are to renegotiate poorer nations’ debt, which have become unsustainable amid surging inflation and a stronger dollar. — AP

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.