Poor countries will be able to pause their debt repayments if hit by climate disaster, under plans announced by the World Bank at the finance summit in Paris.
The international development organisation said it would insert new clauses in any agreements with developing countries, allowing them to suspend debt payments in the case of extreme weather events, starting with some of the poorest and most vulnerable nations.
The UK also said it would apply similar arrangements to its loans to 12 countries in Africa and the Caribbean.
Debt relief for governments struggling with the impacts of the climate crisis has been a key demand of poor countries. However, the World Bank will only apply the clauses to new loans, and the announcements do not add …
Read the full article at: https://www.theguardian.com/environment/2023/jun/22/world-bank-offers-developing-countries-debt-pauses-if-hit-by-climate-crisis