World Bank set to pause loan repayments by disaster-hit nations – FT
The World Bank will allow countries hit by disasters to pause repayments on loans to the multilateral lender, the Financial Times reported on Thursday.
World Bank President Ajay Banga will unveil measures, including the pause on repayments and embedding catastrophe insurance into new loans in a speech in Paris on Thursday, the newspaper reported.
The lender will also allow countries to “quickly redirect” a portion of their funds to responding to an emergency when a crisis occurs, the FT said.
French President Emmanuel Macron is hosting a summit on Thursday and Friday in Paris to pin down a roadmap for easing the debt burdens of low-income countries while freeing up more funds for climate financing.
Nearly 40 heads of state and government are set to back a push for multilateral development banks like the World Bank to put more capital at risk to boost lending, Reuters reported this week, citing a draft summit statement.
The World Bank did not immediately respond to a Reuters request for comment.