World Bank Group President David Malpass said Saturday that he is very pleased to see the progress the Group of 20 (G20) has made on debt transparency and debt relief.

The COVID-19 pandemic has further strained the already fragile economy in most low-income countries around the world, leaving them with volatile and unsustainable debt problems. 

In April, the G20 endorsed the Debt Service Suspension Initiative (DSSI) to help the poorest countries in response to the pandemic, making $14 billion in funds – meant to service debt – available to fight the pandemic. The DSSI was extended in October by six more months.

"These are important, positive steps for development, and I've been glad to see constructive responses from major creditors," Malpass said in remarks to the G20 summit hosted by Saudi Arabia via video conference on November 21 and 22.

Last week, G20 finance ministers and central bank governors pledged to commit to the DSSI in close coordination, saying that maximum support would be provided for DSSI-eligible countries.

Chinese President Xi Jinping on Saturday said that the country supports a G20 decision on the extension of the DSSI, and will continue to fully implement it along with other parties.

"President Xi's commitments and last week's announcements are helpful and welcome," Malpass said at the virtual summit.

"Debt reduction and transparency will enable productive investment, a key to achieving an earlier, stronger and more lasting recovery," said the World Bank chief, adding that "more needs to be done."

Malpass noted that the debt challenges are becoming more frequent, including in Chad, Angola, Ethiopia and Zambia where, in the absence of more permanent debt relief, "the poverty outlook remains bleak."

"We need to guard against doing too little now, and then suffering disorderly defaults and repeated debt restructurings as in the 1980s," he said.

China suspends debt worth over $1.35 bln

China's total debt service payments suspended amount to $1.35 billion under G20's DSSI, ranking first among G20 members in terms of deferral amount, said Finance Minister Liu Kun in an interview on Friday. 

China's debt service suspension benefit 23 countries, said Liu, adding that this is an important deliverable that China contributes for the G20 Leaders' Summit.

Besides the $1.353-billion suspended debt service by official bilateral creditors – the China International Development Cooperation Agency and the Export-Import Bank of China – the China Development Bank, as a commercial creditor, also signed agreements with developing countries involving $748 million by the end of September, according to Liu.

(With input from Xinhua)

(Cover via CFP)