IMF and World Bank Announce Unprecedented Debt Cancellation Programme to Address COVID-19 Pandemic

imf2020.org ^ | 4-15-20 | IMF

[dynachrome]

We are moving forward with a new process that will immediately cancel the debt of the 27 countries facing debt distress. Additionally, all 76 of the World Bank's International Development Association (IDA) countries will receive full debt cancellation. All developing countries categorized either as Middle Income Countries or Low Income Countries who face high debt vulnerabilities will see a full cancellation of debt. In total, this new process will apply to 111 countries. These countries will receive full cancellation of all debts as they wrestle with the COVID-19 Pandemic.

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The Board noted that this relief should help mitigate disruptions to the supply chains of essential commodities for consumption in the developed world such as coffee and chocolate. Prevention of supply chain disruption is essential for timely delivery of medical supplies including scarce Personal Protection Equipment and medicines critical for developed countries as they fight the pandemic.

[dynachrome]

Now everyone will want their debts cancelled.

[ptsal]

I suppose some might ask who and why to expand upon this train of thought....

[Cletus.D.Yokel]

Oh, biiiiiiiitt!

The US Federal Reserve holds US debt, not assets.
What happens to the Fed if debt payments...
...STOP?

[Golden Eagle]

This is how this crap should have been dealt with from the start! Make these bug banks at least suspend collection of debt, instead of asking the little guy to pile more debt on his little back with loans.

[Raycpa]

What about my nation?

[dynachrome]

I hope Pres. Trump tells them NO when it comes to lending out more of our money. I wonder how much of the IMF is funded by us?

[Hillarys Gate Cult]

What about urination?

[Publius]

What was known as the Great Depression in America was known as "the Slump" in Europe. Once the Lausanne Conference of 1932 canceled most World War I debt, Europe recovered rapidly. That debt was the overhang that drove the deflation that was bedeviling Europe.

It's a good idea.

[EvilCapitalist]

And like a fool I worked extra hours, and lived below my means to pay off my mortgage. I should have just waited and asked for debt forgiveness.

[2111USMC]

I do.

:)

[dynachrome]

27 countries, so far?

https://www.worldbank.org/en/topic/debt/brief/dsa

[StormEye]

"I wonder how much of the IMF is funded by us?"

Probably most of it.

[vigilence]

How magnanimous of them. Better PR move than trying to collect the uncollectable. Wish domestic banks would follow suit and cancel debt accrued by Americans for 4-6 months since they were unable to work. Wasn’t it 12 years ago that the American taxpayers bailed the banks out? Seems only fair. But instead the national debt will increase 4-6 Trillion as the government comes to the rescue.

[Rashputin]

Can't cancel all debts, that would stick it to the "Too Big to Fail" Shylocks who we bail out whenever they need it. Or at least :

Cancel all student loan debt, all credit card loan debt up to $50,000 per individual card holder, all mortgage debt with five or fewer years to run til payoff, all auto loans up to $50,000, and eliminate all interest on the balance of all mortgages, then bring back usury laws limiting interest to 6% simple interest without compounding.

There ya' go, IPL the whole economy instead of just the top few percent who live by sucking blood out of the rest of the population.

If you're gonna screw the pooch, screw the puppeteers and let them live with bubble up instead of the majority always living with what little trickles down.

[SkyDancer]

I have a couple of credit cards that’d be nice to be cancelled and written off. LOL

[USFRIENDINVICTORIA]

At this point, it’s all just funny-money anyhow.

Seriously though, the higher interest rate on debt owed by these nations reflects the risk that defaults will happen. Anyone holding paper on those debts has been collecting a premium for several years — betting they’ll get out before the inevitable. Most investors know the risk going in.

There is a high risk of “moral hazard” going forward, whereby certain nations will run up debt with gay abandon; counting on it being waved away eventually. That’s been happing since ... whenever. This will ensure it continues.

[TLI]

DEBT SUSTAINABILITY ANALYSIS

Country	Risk of External Debt Distress	Risk of Public Debt Distress	Most Recent Debt Sustainability Analysis
Afghanistan	High	High	11/21/2017
Bangladesh	Low	Low	10/1/2018
Benin	Moderate	Moderate	12/28/2018
Bhutan	Moderate	Moderate	12/18/2018
Burkina Faso	Moderate	Moderate	2/7/2019
Cambodia	Low	Low	2/5/2019
Cameroon	High	High	3/15/2019
Central African Republic	High		6/26/2018
Chad	High	High	7/13/2018
Côte d'Ivoire	Moderate	Moderate	2/15/2019
Dominica	High	High	10/1/2018
Ethiopia	High	High	12/14/2018
The Gambia	In distress	In distress	10/1/2018
Ghana	High	High	5/14/2019
Grenada	In distress		7/5/2018
Guinea	Moderate	Moderate	2/11/2019
Honduras	Moderate	Moderate	10/1/2018
Kiribati	High	High	2/12/2019
Liberia	Moderate		10/1/2018
Madagascar	Moderate		6/26/2018
Malawi	Moderate	High	12/14/2018
Marshall Islands	High		8/10/2018
Mauritania	High	High	12/28/2018
Myanmar	Low	Low	5/28/2019
Niger	Moderate	Moderate	2/15/2019
Papua New Guinea	Moderate	Moderate	12/20/2018
São Tomé and Príncipe	In distress		9/14/2018
Sierra Leone	High	High	2/1/2019
Solomon Islands	Moderate	Moderate	12/11/2018
Timor-Leste	Low	Low	6/3/2019
Togo	Moderate		10/1/2018
Tuvalu	High	High	10/1/2018

[Starcitizen]

Got a trillion dollars debt to cancel from Communist China as well as forced sell-off of any Communist Chinese-owned properties in the US

Think we can all agree that’s the right thing to do

[LFOD]

The American Jubilee.

[Rashputin]

"The American Jubilee."

Jews dominate the financial sector in this country and Jubilee is a Jewish concept.

Jubilee is the perfect solution and long overdue.
Just mark it up to Tikkun olam destruction of the money idol.

Except for that little thing about the Goy not being human and worthy of the same treatment they expect (but actually seldom get) of one another but hey, they're big on multiculturalism everywhere except in Israel, so we shouldn't let them get away with that racist excuse.