The IMF and World Bank have called for an immediate suspension of all debt payments to other governments by a group of the poorest countries, known as IDA countries.
Reacting to the news, Tim Jones, Head of Policy at Jubilee Debt Campaign said:
“A debt moratorium is urgently needed for poor countries hit by the economic and health crisis caused by Covid-19. The IMF and World Bank are right to call for a suspension of debt payments to other governments, but they also need to waive debt payments to themselves as well. Furthermore, the Fund and Bank need to call for and support a suspension of payments to private creditors. It would be outrageous to allow private speculators to keep taking high interest payments from poor countries at this time of crisis.”
In 2020 the 76 IDA countries are due to spend $18.1 billion on debt payments to other governments, $12.4 billion to multilateral institutions and $10.1 billion to external private creditors.
For further detail see our press releases:
24 March 2020: Calls grow for debt moratorium for poor countries
22 March 2020: Coronavirus worsens debt crisis in poor countries