World Bank calls to avoid extension of debt crisis in Latin America
The multinational organization hopes that the poorest countries can pay off their debt while the recovery gets underway
This Tuesday, the president of the World Bank, David Malpass, reported that the crisis and financial climate that has occurred this last year has led the organization to fulfill the responsibility of raising the world’s economies, especially in Latin America.
In this sense, aid has been allocated to the most vulnerable populations, helping to strengthen international trade and the possibility of restructuring government debt with private investors, as reported by the organization’s representative.
Understanding the situation that has been experienced this last year on a global scale, Latin American countries have resorted to debt to be able to pay for spending on social programs and economic stimulus, generating significant weight in the organization, which has led the Bank to reconsider the possibility that the poorest countries pay off their debt as soon as possible while the recovery takes place.
Malpass reported that during the year “we have been working on the moratorium on payments and the G20 has also presented a common framework for debt reduction, which recognizes that the burden and payment of the existing debt is using a very important fiscal space. in the countries.”
Also ensuring that this space “is needed for social safety nets, for education, health, for the basic needs of people”, which means that “If countries are paying their creditors, that exhausts resources available.”
K.Villarroel
Source: elpais
