World Bank Vice President and Treasurer Jorge Familiar said that the Bank will launch its first debt-for-development project within a few weeks. On the occasion of the International Monetary Fund and World Bank's annual meetings in Washington, World Bank President Ajay Banga announced that the bank is cooperating with several countries to study potential ways to rearrange debt to reduce debt repayment costs and help the government invest in development, life, and education projects. “We're very close,” Familiar said, but declined to say which countries would benefit from this action. In recent years, debt swaps have become increasingly popular, especially so-called “debt-for-nature” projects that use the savings for environmental projects. They save money by buying a country's existing bonds or loans, and then replace them with cheaper debt. Familiar said the initiative targets countries facing a liquidity crisis rather than a solvency crisis, which have taken a range of measures to achieve debt sustainability but are still facing challenges.

Zhitongcaijing · 10/25 13:09
World Bank Vice President and Treasurer Jorge Familiar said that the Bank will launch its first debt-for-development project within a few weeks. On the occasion of the International Monetary Fund and World Bank's annual meetings in Washington, World Bank President Ajay Banga announced that the bank is cooperating with several countries to study potential ways to rearrange debt to reduce debt repayment costs and help the government invest in development, life, and education projects. “We're very close,” Familiar said, but declined to say which countries would benefit from this action. In recent years, debt swaps have become increasingly popular, especially so-called “debt-for-nature” projects that use the savings for environmental projects. They save money by buying a country's existing bonds or loans, and then replace them with cheaper debt. Familiar said the initiative targets countries facing a liquidity crisis rather than a solvency crisis, which have taken a range of measures to achieve debt sustainability but are still facing challenges.