Publication: Opening Remarks by World Bank Group President David Malpass during the Launch of the International Debt Report 2022
Date
2022-12-06
ISSN
Published
2022-12-06
Author(s)
Malpass, David
Abstract
These opening remarks were delivered
by World Bank Group President David Malpass during the
Launch of the International Debt Report 2022 on December 6,
2022. He spoke about the World Bank identified the
stagflation risk early in that year which brings three
risks: a global recession in 2023; a multi-year period of
slow growth; and widespread asset repricing as higher
interest rates are applied, and hedges run out. He mentioned
that the interest rates were very low for a long period
allowing a huge use of capital by fully-funded governments
and business sectors, and this misallocation of global
capital undercuts growth and productivity and will take time
to repair. He spoke about energy prices that are a major
factor, with shortages of fertilizer and food hitting people
in the poorest countries particularly hard. He highlighted
on the combination of extremely high government debt levels
and rising interest rates will cause heavy absorption of
global capital by advanced governments for a prolonged
period. He said that the World Bank’s latest debt statistics
report released that day makes it clear that a debt crisis
in the world’s poorest countries is intensifying. He
mentioned that to address the increase in debt and the new
composition, he has focused on improvements in three areas -
debt sustainability, transparency, and restructuring. He
spoke on debt restructuring, where new mechanisms are needed
to reflect the new creditor landscape. He concluded by
saying that together with the Kristalina Georgieva from the
IMF, they will engage with Chinese authorities and with
their policy banks – the China ExIm Bank and the China
Development Bank on the need for faster progress on
resolving unsustainable debt and the need for more transparency.
Citation
“Malpass, David. 2022. Opening Remarks by World Bank Group President David Malpass during the Launch of the International Debt Report 2022. © Washington, DC: World Bank. http://hdl.handle.net/10986/38518 License: CC BY 3.0 IGO.”