Group President of World Bank, David Malpass, says 60 percent of low-income countries are in debt distress or at high risk of it.
Nigeria is not among low-income countries.
Low-income economies are countries with a gross national income (GNI) per capita of $1,045 or less, according to the World Bank collection of development indicators.
These countries include Liberia, Burundi, Ethiopia, Guinea, The Gambia, Mali, Uganda, Togo, Somalia, Madagascar, and Chad, among others.
Malpass said this on Monday during his opening remarks at a media roundtable of the World Bank/IMF’s 2022 spring meetings.
“I want to say a few words on debt and inflation. These are two big problems facing global growth. Due to high debt and deficit levels, countries are under severe financial stress,” he said.
“Sixty percent of low-income countries are already in debt distress or at high risk of it.
“I participated virtually in our April 13 conference on debt transparency and sustainability and suggested steps to improve the implementation of the Common Framework.”
According to Malpass, the steps include establishing a timeline for forming creditors’ committees, suspension of debt service payments, and penalty interest.
