The World Bank also notes risks to the post-covid-19 economic recovery.
The World Bank Group is mobilizing to come to the aid of low-income countries, by helping them to drive the Covid-19 pandemic out of their territories. To do this, this Breton Woods institution promises to disburse 20 billion US dollars in financing by the end of 2022.
In its report published in mid-February 2022 titled “Finance for an Equitable Recovery”, the World Bank Group claims to have mobilized the sum of 157 billion US dollars since the start of the Covid-19 pandemic. , to deal with the health, economic and social repercussions of this crisis, by deploying a response of unprecedented speed and scale since its creation.
According to this report, the financing made available by the World Bank Group has enabled more than 100 countries around the world to better prepare to fight Covid-19, protect poor populations and jobs, and initiate recovery. climate friendly.
In the same vein, the Bank is also financing the purchase and deployment of vaccines once morest Covid-19 for nearly 70 low- and middle-income countries, more than half of which are located on the African continent.
Risks to post-covid-19 economic recovery
In another chapter, the report of the World Bank Group notes that the countries of the planet are approaching with caution the phase of economic recovery following the disastrous consequences they have suffered as a result of the crisis. health related to Covid-19.
However, according to the World Bank, developing countries might be trapped because of the precariousness of their financial systems and the lack of transparency of debt data. According to the World Bank report, the dramatic increase in sovereign debt in many developing countries due to Covid-19 might deprive essential sectors such as health, education and social protection, essential resources. Which is sure to have disproportionate effects on the poor, and therefore likely to prolong the recession.
In addition, the current high levels of non-performing loans and hidden debt hinder access to credit and considerably reduce financing options for low-income households and small businesses, the World Bank report further indicates.
In its report, the World Bank considers, however, that access to financial services for all, including households and small businesses, must be ensured. The latter, for example, will thus be able to avoid liquidation by remaining in business to contribute to the recovery. To do this, David Malpass believes that “It is essential to work to expand access to credit and ensure that capital is allocated in a way that stimulates growth. This would allow smaller but more dynamic companies, and sectors with greater growth potential, to invest and create jobs”.
MediaCongo The Editorial Board
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congo-press.com (MCP) / mediacongo.net