COVID-19: China, G20 Agree Debt Relief To Nigeria, Others

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COVID-19: China, G20 Agree Debt Relief To Nigeria, Others

Nigeria and other countries of the world have gotten relief after China and G20 agreed to give them debt relief.

China and G20 world leaders

China and G-20 countries have agreed to grant debt relief to the poorest countries in the world which are classified as IDA countries by the World Bank.

This was disclosed today by World Bank President, Savid Malpass at the ongoing virtual April 2020 virtual Spring meetings of the World Bank and International Monetary Fund.

“I take note that in the G-20 meetings, China is supporting the international agreement to allowing moratorium of debt repayments by IDA countries if they ask for forbearance.

“IDA countries will have bilateral debt relief beginning May 1. That way, they can concentrate their resources on fighting the pandemic and its economic and social consequences.”

Countries, such as Nigeria and Pakistan, are IDA-eligible based on per capita income levels and are also creditworthy for some IBRD borrowing. They are referred to as ‘blend’ countries.

IDA countries are those with per capita income below an established threshold. The 2020 threshold is $1,175.