AfDB Says World Bank Criticism on Lending Practices 'Misleading' (Bloomberg)
Last Modified: 01:26 PM, Thu Feb 13, 2020

The African Development Bank said the criticism that World Bank President David Malpass levied against it and similar institutions for lending too easily to heavily indebted countries were misleading. "The general statement by the president of the World Bank Group, insinuating that the African Development Bank contributes to Africa's debt problem and that it has lower standards of lending is simply put: misleading and inaccurate," the AfDB said today. The AfDB "provides a strong governance program for our regional member countries," focusing on the improved management of debt, finances and natural resources.

2020-02-13 

By Alonso Soto


(Bloomberg) -- The African Development Bank said the
criticism that World Bank President David Malpass levied against
the multilateral lender and similar institutions for lending too
easily to heavily indebted countries were misleading.

Malpass voiced his concern over the practices of lenders
that also include the Asian Development Bank and the European
Bank for Reconstruction and Development at a World Bank-
International Monetary Fund forum in Washington on Monday,
saying some were worsening already-challenging debt situations,
Reuters reported.

"The general statement by the President of the World Bank
Group, insinuating that the African Development Bank contributes
to Africa's debt problem and that it has lower standards of
lending is simply put: misleading and inaccurate," the AfDB said
in a statement on Thursday. The AfDB "provides a strong
governance program for our regional member countries," focusing
on the improved management of debt, finances and natural
resources.

Debt levels in the region have been rising as governments
struggle to collect and grow revenue while increasing their
budgets. About 40% of African countries are already at
distressed levels, IMF Managing Director Kristalina Georgieva
said in November.

 

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