Logo of Phnom Penh Post newspaper Phnom Penh Post - WB plans new $170B fund to ease ‘multiple crises’ in poor nations: chief

WB plans new $170B fund to ease ‘multiple crises’ in poor nations: chief

Content image - Phnom Penh Post
World Bank President David Malpass said the global pandemic makes it urgent to reduce the debt of the poorest nations. AFP

WB plans new $170B fund to ease ‘multiple crises’ in poor nations: chief

The World Bank (WB) is seeking to create a $170 billion emergency fund to help the poorest nations being buffeted by multiple crises, the bank’s president David Malpass said on April 18.

The “crisis response envelope” will continue the work begun during the Covid-19 pandemic, and help countries deal with surging inflation, which was made worse by the Russia-Ukraine crisis as well as the “severe financial stress” caused by high debt levels, he said.

“This is a continued massive crisis response,” Malpass told reporters.

High debt and inflation “are two big problems facing global growth”, he said.

“I’m deeply concerned about developing countries. They’re facing sudden price increases for energy, fertiliser and food.”

The Washington-based development lender last week downgraded its forecast for global growth this year, and the International Monetary Fund (IMF) was expected to do the same in updated forecasts due to be released on April 19.

Speaking ahead of this week’s spring meetings of the IMF and WB, Malpass said the 15-month aid fund would run through June 2023 and build on the $157 billion Covid-response fund, which expired in June 2021.

“We expect to commit around $50 billion of this amount in the next three months,” he said, adding that he plans to discuss the fund with the bank board in coming weeks.

Malpass repeated his concern for poor countries facing high debt levels, noting that 60 per cent of low-income countries already face debt distress or are at high risk.

He has recommended improvements in the G20 Common Framework adopted last year, which was meant to offer a path to restructure large debt loads, but has not yet produced results.

A key hurdle is the lack of information on the size of debt owed to China, as well as some other lenders, by private companies as well as governments.

G20 finance ministers will meet on April 20 on the spring meetings’ sidelines.

MOST VIEWED

  • Ministry orders all schools, public and private, to close for SEA Games

    From April 20 to May 18, all public and private educational institutions will be closed to maintain order and support Cambodia's hosting of the 32nd SEA Games and 12th ASEAN Para Games, said a directive from the Ministry of Education, Youth and Sport. Cambodia will host the

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to

  • Angkor Beer strengthens national pride with golden new look and fresher taste

    Angkor Beer – the "Gold of Angkor" – has a new look, one that is more stylish and carries a premium appeal, as well as a fresher taste and smoother flavour, making it the perfect choice for any gathering. Angkor Beer recently launched its new design, one

  • PM urges end to ‘baseless’ international Ream base accusations

    Prime Minister Hun Sen urges an end to “baseless” foreign accusations surrounding the development of the Kingdom’s Ream Naval Base, as the US has consistently suggested that the base is being expanded to accommodate a Chinese military presence. Hun Sen renewed his calls while

  • Khmer ballet documentary debuts April 1

    A new documentary, The Perfect Motion, or Tep Hattha in Khmer, will premiere to the public on April 1. The documentary film follows two intertwined storylines: the creation of a show called Metamorphosis by the late Princess Norodom Buppha Devi (her very last production) and the

  • Water supply authority assures public shortages over early ‘24

    The Phnom Penh Water Supply Authority (PPWSA) asked for understanding from Phnom Penh residents in some communes where water pressure is weak. They assured residents that all supply issues will be resolved by early 2024, but have suggested that residents use water sparingly in the meantime.