World Bank Promises ‘Concessionality’ in Debt Restructuring

World Bank President David Malpass speaks during an event about trade at the headquarters of the World Bank February 14, 2023, in Washington, DC. (AFP)
World Bank President David Malpass speaks during an event about trade at the headquarters of the World Bank February 14, 2023, in Washington, DC. (AFP)
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World Bank Promises ‘Concessionality’ in Debt Restructuring

World Bank President David Malpass speaks during an event about trade at the headquarters of the World Bank February 14, 2023, in Washington, DC. (AFP)
World Bank President David Malpass speaks during an event about trade at the headquarters of the World Bank February 14, 2023, in Washington, DC. (AFP)

The World Bank will "provide as much concessionality to the debt treatment" for distressed economies as possible, its president told a meeting with the International Monetary Fund, India, China, and other creditor nations on Saturday.

The remarks come amid calls by China, the world's largest bilateral creditor, that global lenders should take haircuts on loans extended to developing nations hurt by the impact of the Russia-Ukraine war and the COVID-19 pandemic.

The United States, meanwhile, has repeatedly criticized China over its "foot-dragging" on debt relief for dozens of low-and middle-income countries.

"The World Bank is committed to providing net positive flows in a way that maximizes concessionality in the restructuring process," David Malpass said at the Global Sovereign Debt Roundtable in India's Bengaluru city on the sidelines of the G20 financial leaders' meet.

"We will provide as much concessionality to the debt treatment as possible."

Malpass also said that he noted "constructive remarks" by a deputy China central bank governor at a G20 meeting on Friday that "gave room to move forward" on settlement of debt issues.

Reuters reported earlier this month that India, the current president of the G20 bloc, is drafting a proposal for G20 countries to help debtor nations by asking lenders to take a large haircut on loans.

On Friday, Chinese Finance Minister Liu Kun told the G20 financial leaders that international financial institutions and commercial creditors should follow the principle of "joint action, fair burden" in debt settlements.



Saudi Arabia Urges Global Action to Tackle Energy Poverty

Saudi Finance Minister Mohammed Al-Jadaan speaks at the forum in Vienna on Tuesday. (SPA)
Saudi Finance Minister Mohammed Al-Jadaan speaks at the forum in Vienna on Tuesday. (SPA)
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Saudi Arabia Urges Global Action to Tackle Energy Poverty

Saudi Finance Minister Mohammed Al-Jadaan speaks at the forum in Vienna on Tuesday. (SPA)
Saudi Finance Minister Mohammed Al-Jadaan speaks at the forum in Vienna on Tuesday. (SPA)

Saudi Finance Minister Mohammed Al-Jadaan underscored on Tuesday the critical role of economic reforms in securing basic needs for individuals and communities to achieve prosperity and tackle developmental challenges.

Speaking at the opening session of the 2025 OPEC Fund for International Development Forum in Vienna, he highlighted the urgent need to address “energy poverty” affecting around 1.2 billion people worldwide.

Al-Jadaan emphasized that energy security is not a luxury, but a fundamental pillar for inclusive development and growth.

He warned that its absence disrupts vital sectors, such as healthcare, education, economic productivity, environmental sustainability, and even water extraction and food security.

The minister pointed to geopolitical tensions, market volatility, and rising global energy demand as pressing factors compelling nations to adopt strategic approaches to bolster energy security.

He called for diversifying energy sources, boosting investments in clean technologies, and embracing innovative financing solutions to accelerate energy access and support long-term sustainability.

Moreover, Al-Jadaan urged development banks to take effective action, outlining four key areas for focus. First, he stressed the need for multilateral development banks to support all energy sources impartially.

He cautioned against unrealistic emissions-cutting policies that exclude major energy sources, warning such moves could destabilize energy markets and disproportionately affect developing countries and communities.

Second, he highlighted the importance of concessional financing to speed up energy access in underserved regions.

He praised the World Bank-led “Mission 300” initiative aimed at providing energy to 300 million people in Africa, with significant contributions from partners including the Islamic Development Bank and the OPEC Fund for International Development.

Third, Al-Jadaan discussed lowering investment risks in the energy sector to attract private sector participation.

He pointed to tools such as partial risk guarantees, political risk insurance, and blended finance structures as vital in enhancing the financial viability of energy projects, especially in low-income, high-risk countries.

The fourth focus area called for increased investment in emerging energy technologies, including carbon capture, utilization and storage (CCUS), and more sustainable uses of hydrocarbons.

These efforts, he said, would bolster energy security while addressing carbon emissions in the transition toward net zero.

Al-Jadaan warned that the impacts of energy poverty transcend borders, fueling economic instability, increasing migration pressures, and raising humanitarian burdens worldwide.

He reaffirmed Saudi Arabia’s commitment to working with international partners to strengthen energy security and eradicate energy poverty alongside its climate change initiatives.

Furthermore, Al-Jadaan highlighted the Kingdom’s ambitious targets: generating 50% of its electricity from renewable sources by 2030 and achieving net-zero emissions by 2060, within a circular carbon economy framework.

Global cooperation is essential to achieving fair, sustainable development that benefits all, he stressed.