World Bank Prez- China is the Lender of 75 % Debt to Worlds’ Poorest Countries

China has emerged as the biggest lender to the poorest countries of the world. World Bank President David Malpass revealed.

The financial burden on the world is getting deeper day by day. The figures on the poorest countries of the world released by the world bank speak of a huge jump of 35 percent over the past year, in annual debt service to the official bilateral creditors. Speaking on the report World Bank President David Malpass said that there is an exponential increase in the burden of their high debt-to-GDP ratios. He further informed that the biggest lender in this is China which has a two-thirds share of lending to these countries.

 

As per a tweet on the official website of Reuters, this information was given by the World Bank President to the news agency Reuters on Thursday in an interview while speaking at Reuters Next Conference in New York held on 30 November-1 December 2022. The World Bank President further said that he was worried about a disorderly default process where there’s not a system to really address debts for poorer countries. Building up debt in advanced countries like America is leaving lesser capital to be infused in developing economies.

 

Addressing China directly on his concerns, the World Bank President said- “China's one of the big creditors, so...it's very important that China engage on this issue and think about where it sees the world going and be responsive to work with what needs to be done to achieve sustainability for the countries."

https://twitter.com/Reuters/status/1598493789336780801?s=20