Reducing debt will end poverty trap for poor nations: World Bank chief

Developing countries and emerging markets face dire economic consequences from the pandemic given inadequate healthcare systems

The Group of 20 major economies should extend a freeze on official bilateral debt payments by the world's poorest countries through 2021, and permanently reduce the debt load of some of the most heavily indebted ones, World Bank President David Malpass said on Wednesday.

Merely delaying debt payments would not solve the problems of countries that were already facing high levels of debt before the coronavirus pandemic, Malpass told a G20 debt conference.

"In such cases, we need to not merely reduce debt service today, but reduce debt service tomorrow and permanently," Malpass said.

"This will create light at the end of the