Home » Archives by category » Debt relief
Covid pandemic has pushed poor countries to record debt levels – World Bank

Covid pandemic has pushed poor countries to record debt levels – World Bank

World BankCovid pandemic has pushed poor countries to record debt levels – World Bank‘Tragic reversal’ has set back progress, president says, as he calls for a comprehensive plan Coronavirus – latest updates See all our coronavirus coverage Larry ElliottMon 11 Oct 2021 10.57 EDTLast modified on Mon 11 Oct 2021 14.22 EDTThe Covid-19 pandemic has led to a “tragic reversal” in development and pushed debt in poor countries to record levels, the head of the World Bank has said.David Malpass, the bank’s president, warned the virus had widened the gap between rich and poor nations, setting back progress by years and, in the case of some countries, by a decade.Announcing new World Bank figures showing the debt burden of more than 70 low-income nations had increased by a record 12% to $860bn (£630bn) in 2020, Malpass called for a comprehensive plan to ease the debt pressures and for rich countries to make vaccines available to the less well-off.Wealthy nations must share more resources or risk crisis for billions, warns UN chiefRead moreHe said one particular problem was the lack of a bankruptcy process to help in cases where debts had become unsustainable. Under the current system, companies can declare themselves bankrupt but countries cannot.With income per head expected to rise by an average of 5% in developed countries this year compared with 0.5% in developing countries, Malpass said the problem of inequality …