G-20 to Extend Poor Nations’ Debt Relief, Malpass Says

(Bloomberg) -- The Group of 20 nations agreed to extend debt relief to the poorest nations for a further six months, World Bank President David Malpass said.

The world’s richest countries also agreed to extend term sheets for this debt, Malpass said in an online press conference Wednesday. He said that the G-20 needs to take “more steps” for “meaningful debt reduction.”

Earlier this week, he said that the G-20’s Debt Service Suspension Initiative that began in May is only providing shallow relief due to the lack of full participation by China and private creditors.

So far, more than 40 have applied for help from the DSSI, with most refraining from demanding a waiver from private creditors for fear they could be locked out of debt markets.

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