As signs of financial crisis emerge due to the outbreak of coronavirus, The World Bank Group and International Monetary Fund (IMF) propose a joint statement to the G20 leaders to exonerate debt payments from the International Development Association (IDA) countries. The G20 leaders of 19 countries and the European Union (EU) were invited to ask the World Bank and IMF to assess and identify the countries with unsustainable debt situations.
International Development Association (IDA) is a part of the World Bank, and aids in providing concessional finance and grants to 76 recipient countries. Financial resources from IDA helps over 1.3 billion people of the recipient countries. The call-to-action by The World Bank and IMF can help the private sector, health preparedness for the corona virus pandemic, subsequently containment of the virus, diagnosis, and treatment.
Promptly acting and in compliance with the national laws of the creditor countries, the World Bank Group (WBG) and International Monetary Fund (IMF) had recourse to all official creditors to suspend the debt payments from the IDA countries. And as for the IDA members, this decision can help with their double whammy of vulnerable economic conditions and Covid-19 outbreak.