World Bank sees more countries in ‘deep debt distress’ this year

World Bank sees more countries in ‘deep debt distress’ this year

World Bank sees more countries in 'deep debt distress' this year

an hour ago

The World Bank headquarters in Washington. File/Agence France-Presse

The World Bank has predicted that more countries will come under 'deep debt distress' this year as the coronavirus pandemic situation worsens. Chad and several other countries are already in 'deep debt distress' and more will join their ranks this year, given the severity of the global recession triggered by the COVID-19 pandemic and other problems, World Bank Group President David Malpass said.

The African oil producer Chad may need a deep reduction in the net present value of its debt, and creditors would need to work with the country to find a viable solution to its debt overhang, Malpass told reporters.

"For some countries, it's a red alert,“ he said during a teleconference. "We need to find ways to adjust the debt burden, so that the burden of debt on people in poorer countries can be reduced dramatically.“

He said Zambia had already defaulted on some of its debts and restructurings were under way in Angola and Ecuador but declined to name other countries facing acute problems. He said the Bank and the International Monetary Fund (IMF) were currently assessing the