World Bank President: "G20 Plans to Extend Debt Repayment Moratorium for Low-Income Countries Until Year-End"

David Malpass, President of the World Bank (WB)
Photo by AP Yonhap News

[Asia Economy Reporter Jeong Hyunjin] David Malpass, President of the World Bank (WB), said that the debt repayment moratorium by the Group of Twenty (G20) for low-income countries is expected to be extended until the end of this year, AFP reported on the 5th (local time).

According to the report, President Malpass told reporters that the G20 is likely to agree to further extend the 'Debt Service Suspension Initiative (DSSI)' which postpones debt repayments for low-income countries struggling due to COVID-19. The G20 creditor countries had previously extended the DSSI expiration date once, from the end of last year to June of this year.

However, President Malpass explained that the G20 creditor countries are expected to make it clear that this will be the final extension of the debt moratorium. He also pointed out that, overall, the debt burden of low-income countries is unsustainable, and therefore long-term debt relief is necessary.

Meanwhile, the International Monetary Fund (IMF) approved the third debt relief for 28 poorest countries under the Catastrophe Containment and Relief Trust (CCRT) program. This extends debt repayments totaling $238 million until October 15.