World Bank to propose $25 billion in extra funding for poorest countries

FILE PHOTO: World Bank President David Malpass attends the "1+6" Roundtable meeting at the Diaoyutai state guesthouse in Beijing, China November 21, 2019. REUTERS/Florence Lo/File Photo

WASHINGTON (Reuters) - The World Bank is calling for $25 billion in further COVID-19 emergency financing to help the world’s poorest countries grapple with the massive challenges of the global pandemic, the Bank’s president said on Wednesday.

David Malpass told finance ministers and central bank governors of the G20 major economies that he would propose the supplemental financing package later this month to deputies of the International Development Association, the World Bank arm that helps the world’s poorest countries.

Malpass underscored concerns about the rising risk of “disorderly defaults” among low-income countries, and said the World Bank and International Monetary Fund had proposed a joint action plan to help those for the most heavily-indebted IDA countries.

Reporting by Andrea Shalal and David Lawder