Paris Club Debt Delays Reach $1.3 Billion For 18 Countries

LAGOS (Capital Markets in Africa) — The Paris Club has waived $1.3 billion in debt payments for 18 of the world’s poorest countries to help them free up resources to battle the coronavirus pandemic.

So far, 32 of the 73 countries eligible for relief have requested a suspension of payments until the end of the year, the club, an informal grouping of 22 country lenders, said Tuesday in a statement.

The suspension is part of an agreement by the Group of 20 leading economies that aims to waive about $12 billion in bilateral debt payments from countries that are especially vulnerable to the pandemic. At the same time, some multilateral lenders such as the World Bank and private creditors have been reluctant to participate in the debt-relief initiative.

Even before the pandemic, rising debt levels across developing nations raised fears of a debt crisis that could unravel years of progress in reducing poverty in Latin America and Africa.

The Paris Club claims rose to $317 billion by the end of 2019 from $315 billion a year earlier.