Company News

World Bank's Malpass says G20 may agree to only six-month debt relief extension

WASHINGTON, Oct 12 (Reuters) - Some G20 creditor countries are reluctant to broaden and extend another year of coronavirus debt service relief to the world’s poorest countries, so a six-month compromise may emerge this week, World Bank President David Malpass said on Monday.

Malpass, speaking to reporters as the World Bank’s and International Monetary Fund’s virtual annual meetings get underway, said that G20 debt working groups have not reached agreement on the two institutions’ push for a year-long extension of the G20 Debt Service Suspension Initiative (DSSI).

“I think there may be compromise language that may be a six month extension (and) that it can be renewed depending on debt sustainability,” Malpass said. (Reporting by David Lawder Editing by Chizu Nomiyama)