Last month, during the General Debate of the 75th Session of the United Nations General Assembly (UNGA), President Lazarus Chakwera called for debt cancellation, as means of easing pressure off countries amidst the coronavirus pandemic. Recently, the World Bank President, David Malpass, also stated the need for debt cancellation, to relieve the countries.
“It is evident that some countries are unable to repay the debt they have taken on. We must, therefore, also reduce the debt level. This can be called debt relief or cancellation,” said president.
Meanwhile, the World Bank Group, the International Monetary Fund (IMF), the Organisation for Economic Cooperation and Development (OECD) and other development partners have granted a debt moratorium granted to Least Developed Countries (LDCs). On the other hand, the Tonse Alliance government canceled the Extended Credit Facility (ECF) by the International Monetary Fund (IMF) program. The development saw Malawi forfeit a minimum of K50 billion credit.