Washington DC - The Development Committee, a ministerial-level consensus building and policymaking body for the World Bank and the IMF, met as part of the Annual IMF and World Bank Meetings.
Eric LeCompte the Executive Director of the religious development organization Jubilee USA, releases the following statement on the World Bank Development Committee Communiqué:
“The cocktail of high debts, shrinking economies and rising spending pressures requires much bolder action than just extending the debt payment suspension.
"The Development Committee again is encouraging that debt relief possibilities be reviewed for middle-income developing countries too, not just low-income countries.
"Some of the most significant increases in poverty and job loss are in middle-income developing countries and so far these countries are left out of debt relief processes.
"The ministers are highlighting their concern that the private sector is not participating in debt relief for countries facing coronavirus health and economic crises.
“The Bank leadership is concerned that its exceptional assistance may be going to repay creditors that refuse to forgive debts.
“The World Bank President has put on the table some bold ideas for a debt restructuring process that restores balance between creditors and debtors.
"Global poverty is growing for the first time in two decades. World Bank assessments show that 150 million people will fall into extreme poverty by 2021.
"The World Bank disbursed a record $45 billion in the first 3 months of the pandemic and committed to disburse $115 more by mid-2021, but a lot of this assistance is in the form of loans to countries already in debt.
“The Bank is front-loading aid resources to the poorest countries to respond to the pandemic. The Bank will need a new infusion of resources to keep up this crisis.
“The IMF should access new global reserve funds or the Special Drawing Rights. These resources could support increased Bank lending and debt relief capacity."
Read the World Bank Development Committee Communiqué here.
Read Jubilee USA's statement on the World Bank and IMF Annual Meetings and communiqué here.
Read Jubilee USA's press release on the G20 Finance Ministers Meeting here.
Read Jubilee USA's press release on the IMF's World Economic Outlook and Global Financial Stability reports here.