Indications of conditional debt waiver from IMF and World Bank

Indications of conditional debt waiver from IMF and World Bank
New York: The IMF and the World Bank have taken a major decision to provide loan waivers to the world’s poorest countries in exchange for “green projects” on which concrete suggestions have been sought.

The IMF and World Bank’s spring meetings this week have seriously considered a plan to forgive poor countries’ loans in exchange for environmentally friendly “green” investments.

According to a report by a foreign news agency, concrete proposals are expected at the World Climate Summit to be held this autumn.

Poor countries are facing a double whammy due to the global economic downturn after the corona virus, they are under pressure to repay their debts while at the same time they are struggling with environmental issues.

In this regard, the Managing Director of the IMF, Kristalin Georgieva, says that this makes him very weak. This is how the world understands the idea of ​​so-called green debt exchange.

A World Bank spokesman also emphasized that the Corona virus crisis has made it increasingly difficult for developing countries to cope with the growing threat of climate change and environmental catastrophes.

Already with low budgets, these countries have had to use emergency financing to deal with the severe effects of the epidemic and the resulting economic crisis.

According to a World Bank spokesperson, a technical working group that brought together not only representatives of the IMF and World Bank, but also representatives of the United Nations and the OCED, was launched this week to address such challenges. Explore creative opportunities to help warring nations.

Sources say that although no specific time has yet been announced for concrete steps, all parties involved are clearly referring to the 26th COP Climate Summit in Glasgow, Scotland.

In this regard, Cherido, CEO of a global investment company in Paris, says that if the green debt swap option is to be considered, it must be clearly “conditioned” that the debt relief be green. Lead projects.

The IMF and the World Bank will also have to consider the plight of the middle-income economies of several island nations that receive less economic aid but face environmental challenges.

Jack

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