China, G-20 Approves Debt Relief For Nigeria

The G-20 countries which includes China have approved a debt relief to Nigeria and other ‘poor’ countries in the world.

China, G-20 Approves Debt Relief Fotlr Nigeria

These countries are classified as International Development Association (IDA) countries by the World Bank.

World Bank President, David Malpass, made this known on Friday at the ongoing April 2020 virtual Spring meetings of the World Bank and the International Monetary Fund.

“I take note that in the G-20 meetings, China is supporting the international agreement to allowing moratorium of debt repayments by IDA countries if they ask for forbearance.

“IDA countries will have bilateral debt relief beginning May 1. That way, they can concentrate their resources on fighting the pandemic and its economic and social consequences.”

IDA countries are those with per capita income below an established threshold. The 2020 threshold is $1,175.

Countries, such as Nigeria and Pakistan, are IDA-eligible based on per capita income levels and are also creditworthy for some IBRD borrowing. They are referred to as ‘blend’ countries.