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Suspend Debt Payments By Poorest Nations, World Bank Advices

Suspend Debt Payments By Poorest Nations, World Bank Advices

The world Bank and the International Monetary Fund have advised all governments to suspend all dept payments from all the poorest nations of the world. They said it would be best these nations first battle with the present pandemic.

The Washington based development lenders said they believe at this moment to provide a global sense of relief. This is  especially for the developing countries. This aims to help countries that are home to two thirds if the worlds population living in extreme poverty.

They recognized the fact that the COVID-19 outbreak is going to have a severe impact on the economic and social sectors of the world at large. The world bank called the group of 20 nations to support the initiative. “All official bilateral creditors to suspend debt payments from all International Development Association countries that request forbearance”

Currently, millions of people have been advised to stay home and indeed most people are now staying home. This however is not the case in African countries. Most African governments can’t afford to feed people at a free cost. It’s hard, yet people have to eat.

The Governments should come out and advice banks to put a stand still on loans so that people can pay later. Otherwise currently it would be unrealistic for banks to demand people because every one is finding means on how they can go through this period of Coronavirus.

Read Also: The Coronavirus Will Affect The World Economy For Years To Come

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