Tag: World Bank

Pressure Mounts on China to Offer Debt Relief to Poor Countries Facing Default

Chin@Strategy

WASHINGTON — China, under growing pressure from top international policymakers, appeared to indicate this week that it is ready to make concessions that would unlock a global effort to restructure hundreds of billions of dollars of debt owed by poor countries. China has lent more than $500 billion to developing countries through its lending program, making it one of the world’s largest creditors. Many of those countries, including several in Africa, have struggled economically in the wake of the pandemic and face the possibility of defaulting on their debt payments.…

Pressure Mounts on China to Offer Debt Relief to Poor Countries Facing Default

Chin@Strategy

WASHINGTON — China, under growing pressure from top international policymakers, appeared to indicate this week that it is ready to make concessions that would unlock a global effort to restructure hundreds of billions of dollars of debt owed by poor countries. China has lent more than $500 billion to developing countries through its lending program, making it one of the world’s largest creditors. Many of those countries, including several in Africa, have struggled economically in the wake of the pandemic and face the possibility of defaulting on their debt payments.…

The Guardian view on the world economy: another bleak era beckons | Editorial

Chin@Strategy

Remember the roaring 20s? Even as Covid gripped the world, optimists piped up that the economy would come roaring out of the pandemic, bolstering incomes and kickstarting an almighty boom. Harking back to the Spanish flu pandemic of a century earlier, they saw a decade of glorious growth ahead. Well, they were wrong. Ahead lies not roaring but snoring; no boom, but ever-deepening gloom. That is the message from the International Monetary Fund and the World Bank, which are holding their spring meetings in Washington DC this week. In its…

Defaults Loom as Poor Countries Face an Economic Storm

Chin@Strategy

WASHINGTON — Developing nations are facing a catastrophic debt crisis in the coming months as rapid inflation, slowing growth, rising interest rates and a strengthening dollar coalesce into a perfect storm that could set off a wave of messy defaults and inflict economic pain on the world’s most vulnerable people. Poor countries owe, by some calculations, as much as $200 billion to wealthy nations, multilateral development banks and private creditors. Rising interest rates have increased the value of the dollar, making it harder for foreign borrowers with debt denominated in…

In Global Slowdown, China Holds Sway Over Countries’ Fates

Chin@Strategy

BEIJING — When Suriname couldn’t make its debt payments, a Chinese state bank seized the money from one of the South American country’s accounts. As Pakistan has struggled to cope with a devastating flood that has inundated a third of the country, its loan repayments to China have been rising fast. When Kenyans and Angolans went to the polls in presidential elections in August, the countries’ Chinese loans, and how to repay them, were a hot-button political issue. Across much of the developing world, China finds itself in an uncomfortable…

China growth lags Asia-Pacific for first time in decades as World Bank cuts outlook

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Covid-zero policies and the housing market crisis have put China’s economic growth behind the rest of the Asia-Pacific region for the first time in more than 30 years, according to World Bank forecasts. In a biannual report released on Tuesday, the US-based institution said the annual growth outlook for East Asia and the Pacific region had been downgraded from 5% to 3.2%. However much of that decline was down to economic woes in China, which constitutes 86% of the region’s economic output. The World Bank forecast GDP growth in China…

Ukraine war to slow growth and drive up poverty in Asia, World Bank warns

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Russia’s invasion of Ukraine has further dampened the economic prospects for developing countries in east Asia and the Pacific, meaning lower economic growth and higher poverty in the region this year, the World Bank has warned. The Ukraine factor came on top of the existing risks that the region – home to 2.1 billion people and stretching from China to Papua New Guinea – has been facing in recent years. They included the ongoing Covid-19 pandemic, the financial tightening in the US, and the pandemic resurgence amid China’s zero-Covid policies.…

How Many People Have Escaped Poverty?

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How Many People Have Escaped Poverty? Lucy Tompkins⏳ Reporting on futures past Greg Baker/Agence France-Presse — Getty Images China, the most populous country, accounted for the vast majority of the reduction. As China’s economy grew at a staggering rate, incomes and living standards rose with it. But extreme poverty also declined in much of the world. NYT

I.M.F. Chief Kristalina Georgieva Denies Claims She Inflated China Data

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WASHINGTON — In remarks to staff on Friday, Kristalina Georgieva, the managing director of the International Monetary Fund, denied allegations that she pressured staff to manipulate a report to placate China when she was a top World Bank official and said she cares deeply about the integrity of data and analysis, according to people familiar with the meeting. “I disagree with the implications for my role, and let me put it very simply to you: Not true,” she said, according to a transcript of her remarks. A day earlier, an…

Inquiry finds World Bank officials, including now-I.M.F. chief, pushed staff to inflate China data.

Chin@Strategy

WASHINGTON — An investigation into manipulation of an annual World Bank report has found that Kristalina Georgieva, the bank’s former chief executive, who now leads the International Monetary Fund, directed staff to alter data to placate China. The findings of the investigation, which was conducted by the law firm WilmerHale at the request of the bank’s ethics committee, raised questions about the judgment of Ms. Georgieva during her time at the World Bank and underscored the pressure that the bank has been under to accommodate China, its third-largest shareholder after…