The World Bank Group and International Monetary Fund have called on all official bilateral creditors to suspend debt payments from IDA countries that request forbearance.
WBG and IMF made the call through a joint statement they issued to the G20 concerning debt relief for the poorest countries in response to the ravaging coronavirus.
The two bodies explained that the move would help with IDA countries’ immediate liquidity needs to tackle challenges posed by the coronavirus outbreak, and allow time for an assessment of the crisis impact and financing needs for each country.
“The coronavirus outbreak is likely to have severe economic and social consequences for IDA countries, home to a quarter of the world’s population and two-thirds of the world’s population living in extreme poverty.
Meanwhile, Nigeria and 39 other African countries are currently eligible to receive IDA resources.
The statement disclosed that there are a total of 761 countries that are in this category.
“Eligibility for IDA support depends first and foremost on a country’s relative poverty, defined as GNI per capita below an established threshold and updated annually ($1,175 in fiscal year 2020).
“IDA also supports some countries, including several small island economies, that are above the operational cutoff but lack the creditworthiness needed to borrow from the International Bank for Reconstruction and Development (IBRD). Some countries, such as Nigeria and Pakistan, are IDA-eligible based on per capita income levels and are also creditworthy for some IBRD borrowing,” the statement added.