In practice, the meetings began at the beginning of the week, with a round table on the debt restructuring of the most indebted States in which, in addition to the IMF and the World Bank, the main creditor countries, including China, as well as representatives of private creditors and Zambia, one of those affected.
“We hope to reach a memorandum on the subject soon,” Malpass stressed. “It was the objective of this process and we hope to achieve it this week or next.”
Steadily rising interest rates put low-income countries closer to the risk of a debt crisis. This is already the case for 15% of them, said the head of the IMF, Kristalina Georgieva, and another 40% could have this problem.
Likewise, Malpass pointed out that it is difficult to negotiate, because it is “basically changing the conditions of the debt contract, modifying the rate or extending the maturity or the amount to be repaid, to make the country’s debt more sustainable.” a long process.
Malpass, who will leave office at the end of June, acknowledged that he is “looking for new opportunities” after having been part of the US administration since 1984.
He will most likely be succeeded by the American Ajay Banga, the only candidate for the position.
World economy must overcome weak growth
Meanwhile, the managing director of the International Monetary Fund, Kristalina Georgieva, said on Thursday that the world economy has proved remarkably resilient to multiple shocks, but has yet to overcome a combination of weak growth and persistent inflation.
The IMF’s 2.8% global growth forecasts “are not enough to provide opportunities for businesses and citizens around the world, and what is most worrisome is the projection of weak growth over a longer period of time,” Georgieva said. .
With information from AFP and Reuters.
