China Accounts For 66% Debt-Service Payments By Nigeria, Others in 2022 – World Bank

China is expected to account for 66 percent of the debt-service payments International Development Association (IDA) countries will be making on their official bilateral debt in 2022, the World Bank has said.

The World Bank Group President, David Malpass, made this known in his opening remarks during the launch of the International Debt Report 2022 on Tuesday, According to details of the transcript of his speech posted on the World Bank website, while China’s debt stock is roughly half of bilateral debt, its debt service payments are around 2/3 of bilateral debt service payments.

Malpass, noted “At the end of 2021, China was the largest bilateral creditor to IDA countries, accounting for $100 billion of their bilateral debt stock, that is up from $15 billion in 2010,”.

The International Development Association (IDA) is the part of the World Bank that helps the world’s poorest countries. Established in 1960, IDA aims to reduce poverty by providing zero to low-interest loans (called “credits”) and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions.

Several countries of the world are eligible to receive IDA resources. Some countries, such as Nigeria and Pakistan, are IDA-eligible based on per capita income levels and are also creditworthy for some IBRD borrowing. They are referred to as “blend” countries.