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World Bank, IMF seek urgent debt relief for Nigeria

World Bank, IMF seek urgent debt relief for Nigeria

The World Bank and International Monetary Fund (IMF) are seeking suspension of debt repayment and debt relief for Nigeria and other countries in the International Development Association (IDA).

The two global financial giants are of the opinion that the countries under IDA will suffer heavily as a result of the outbreak of coronavirus and will need all the support they can get from the G-20 leaders to bring some level of stability to their economies.

A joint statement released by the two bodies in part reads:

“The coronavirus outbreak is likely to have severe economic and social consequences for IDA countries, home to a quarter of the world’s population and two-thirds of the world’s population living in extreme poverty”.

“With immediate effect—and consistent with national laws of the creditor countries—the World Bank Group and the International Monetary Fund call on all official bilateral creditors to suspend debt payments from IDA countries that request forbearance. This will help with IDA countries’ immediate liquidity needs to tackle challenges posed by the coronavirus outbreak and allow time for an assessment of the crisis impact and financing needs for each country”.

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“We invite G20 leaders to task the WBG and the IMF to make these assessments, including identifying the countries with unsustainable debt situations, and to prepare a proposal for comprehensive action by official bilateral creditors to address both the financing and debt relief needs of IDA countries”

Nigeria is one of the 76 countries categorized as poor and eligible to receive IDA support.

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