Nigeria and other countries in the International Development Association, IDA, have been granted debt relief by China and other members of the G20 block as well as the World Bank Group following the damage to their economies by the coronavirus pandemic.
World Bank Group President David Malpass last Friday formally announced the development during his remarks at the Development Committee at the World Bank Group/International Monetary Fund 2020 Virtual Spring Meetings in Washington DC.
The World Bank he said is committing about $160 billion over the next 15 months to help developing countries recover from the effect of the pandemic.
Malpass also urged commercial creditors of governments to support sovereign debt reduction efforts too.
“Beyond the health impacts from the COVID-19 pandemic, we are expecting a major global recession. Our estimates suggest a much deeper global downturn than the Great Recession, given the declines in production, investment, employment and trade.
And while the tragic impacts of this pandemic are being felt globally, this crisis will likely hit the poorest and most vulnerable countries – and people – the hardest. IDA countries, which are home to two-thirds of the world’s extreme poor, will be severely affected,” he said.
The IMF had earlier this week announced debt relief to about 25 poor countries including The Gambia and Liberia.
Nigeria is presently not indebted to the IMF though it recently applied for a loan from the Fund for use to support the economy following the impact of COVID-19.