Poor countries demand cancellation of IMF, World Bank loans

Poor countries demand cancellation of IMF, World Bank loans

Washington - More than 300 lawmakers around the world have called on the International Monetary Fund and the World Bank to cancel loans to the poorest countries due to the coronavirus and increase funding to avert a global economic crisis.

The appeal came in letters to the heads of the World Bank and the IMF, as well as to US President Donald Trump and other world leaders.

He asked both international organizations to respond within 15 days.

imf

It should be noted that the large-scale lockdown to control the virus
The global economy, especially the poorest countries with weak health systems, high levels of debt, and limited resources, is struggling to cope with both the health and economic crises.

Cristalina Georgia, the IMF's managing director, said on Tuesday that the agency was likely to review its global output forecast for 2020 and reduce it further.

He said developing countries would need more than  $2.5 trillion in funding to deal with the crisis.

Former U.S. presidential candidate Senator Bernie Sanders, who led the move with Democrat Ilhan Omar of Minnesota, said poor countries need our money to care for their people.
 Instead, they have to pay off "unsecured debt" owed to major international financial institutions.

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