Apparently realizing the world's inability to inflate away what has become a growing global debt problem, the World Bank has now instead turned to the idea of shaming the countries that hold the debt into offering "relief".
World Bank President David Malpass said this week that The Group of 20 Nations should be offering debt relief to the poorest nations in the world "through the end of next year", according to Bloomberg. Malpass also suggested that both "hedge funds" and "China" play a role in the efforts.
The G-20's "Debt Service Suspension Initiative" that it implemented in May is providing only "shallow relief" for such nations because of a lack of participation by China and private creditors, Malpass said.
He told Bloomberg TV on Monday:
"We need to do much more. The commercial creditors were supposed to join that initiative as well, that means banks and hedge funds, for example. Unfortunately, they didn’t, and even the bilateral official creditors didn’t fully participate, so the savings for these countries, we’re talking about the poorest countries in the world, they’re still paying their debts in some cases, and so that I think should be broadened."
Yeah David - just because countries take on debt doesn't mean they should be obligated to repay it. And just because someone lends money doesn't mean they're entitled to be repaid, right?
Malpass' take on the situation came during the World Bank and the IMF's annual meetings, being held this week, in virtual format due to the pandemic. The world's growing global debt problem will be a "key theme" at the gathering, Bloomberg notes.
Meanwhile, now that the idea of lending and borrowing has been dismantled, it's probably just time to start getting used to the words debt jubilee.