{"id":1446883,"date":"2022-04-20T06:44:55","date_gmt":"2022-04-20T10:44:55","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1446883"},"modified":"2022-04-20T06:45:01","modified_gmt":"2022-04-20T10:45:01","slug":"imf-world-bank-chiefs-raise-alarm-on-global-debt-levels","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/imf-world-bank-chiefs-raise-alarm-on-global-debt-levels\/","title":{"rendered":"IMF, World Bank Chiefs Raise Alarm on Global Debt Levels"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fimf-world-bank-chiefs-raise-alarm-on-global-debt-levels%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1446883&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><\/div>\n<p>(Bloomberg) &#8212; The heads of the world\u2019s biggest international finance institutions sounded the alarm about record global debt levels, with the International Monetary Fund\u2019s chief saying options to deal with the billions owed by poor nations are disappearing.<\/p>\n<p>Most Read from Bloomberg<\/p>\n<p>\u201cWe see the problem for many countries getting worse and the tools to deal with this problem are disappearing,\u201d Kristalina Georgieva said in an online discussion with World Bank President David Malpass on Tuesday. \u201cThe debt problem is knocking on the door louder and louder.\u201d<\/p>\n<p>Both organizations have for months flagged risks from rising debt levels in emerging markets, particularly as interest rates start to increase to cool accelerating inflation. The World Bank estimates that the poorest countries &#8212; whose fragile economies have been decimated by the pandemic &#8212; owe $35 billion in payments in 2022.<\/p>\n<p>The urgency to avert what Georgieva has termed \u201ceconomic collapse\u201d for some countries is growing after the Group of 20 biggest nations\u2019 reprieve on debt-service payments for about 70 struggling nations &#8212; in place since May 2020 &#8212; expired at the end of 2021.<\/p>\n<p>A plan forged by the G-20 in late 2020 to rework the debt of countries in danger of defaulting &#8212; known as the Common Framework &#8212; has been hampered by a lack of coordination, transparency and clarity.<\/p>\n<p>\u201cWe don\u2019t have the Debt Service Suspension Initiative anymore, the Common Framework has not yet delivered on its promise,\u201d Georgieva said. \u201cIf we don\u2019t want to see countries going into debt distress and from there into not servicing debt &#8212; as Sri Lanka just did &#8212; let\u2019s get serious about the Common Framework.\u201d<\/p>\n<p>Sri Lanka on Monday asked the IMF for a speedy bailout package as officials battle to save the island nation from economic troubles that have snowballed into a deepening political crisis. President Gotabaya Rajapaksa also said that the nation should have gone to the IMF to request a program earlier.<\/p>\n<p>The country is seeking up to $4 billion this year to tide over problems and pay creditors amid dwindling foreign reserves and Asia\u2019s fastest inflation. Last week, the country halted payments on foreign debt, leading to a series of downgrades of the nation\u2019s credit rating.<\/p>\n<p>While the G-20 meetings in the past two years have been a forum to review the progress of debt relief initiatives and address need for changes, this week\u2019s gathering of finance ministers and central bankers during the IMF and World Bank spring meetings is shaping up to be dominated by a focus on Russia\u2019s invasion of Ukraine.<\/p>\n<p>The World Bank has had \u201csubstantial success\u201d over the last year helping countries convert floating-rate debt to fixed-rate securities amid the prospects of interest rates going up globally, Malpass said. This is \u201cgoing to help a little bit,\u201d he added.<\/p>\n<p>The $35 billion owed this year by the world\u2019s poorest countries &#8212; those eligible for assistance under the bank\u2019s International Development Association &#8212; is both to bilateral lenders and private creditors.<\/p>\n<p>\u201cThere needs to be relief on that front &#8212; some of the official creditors have large amounts outstanding and that needs to really be considered as interest rates go up,\u201d Malpass said. \u201cIt\u2019s just adding to the urgency of this process.\u201d<\/p>\n<p>Most Read from Bloomberg Businessweek<\/p>\n<p>\u00a92022 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Bloomberg) &#8212; The heads of the world\u2019s biggest international finance institutions sounded the alarm about record global debt levels, with the International Monetary Fund\u2019s chief saying options to deal with<\/p>\n","protected":false},"author":498,"featured_media":2315279,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1446883","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1446883","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/498"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1446883"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1446883\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1446883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1446883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1446883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}