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  • World
  • Updated: October 07, 2022

World Bank President Malpass Warns Of 'Fifth Wave' Of Global Debt Crisis

World Bank President Malpass Warns Of 'Fifth Wave' Of Global

World Bank President David Malpass has warned that the world is facing the fifth wave of debt crisis.

The COVID-19 pandemic forced many countries to take on more borrowing, and the World Bank and International Monetary Fund (IMF) have warned that many are already facing or at risk of debt distress amid soaring global inflation and rising interest rates.

Malpass said; "I'm worried about the debt levels, worried about the individual countries.

"In 2022 alone, around $44 billion in debt service payments from bilateral and private debt service have become due in some of the poorest countries, bigger than the foreign aid flows the countries could hope for.

"Right now we're in the midst of what I think is a fifth wave of debt crisis."

Speaking days before policymakers gather in Washington for the annual meetings of the IMF and World Bank, Malpass called for "radically more transparency" from creditors and borrowers on the debt levels.

Developing countries also need more capital flows, and although the World Bank is expanding help for countries, it is "simply not enough," he said.

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