China, G-20 countries give Nigeria, others debt relief

China and G-20 countries have announced their resolve to grant debt relief to Nigeria and other poorest countries with debt obligation to them.

The debt pardon is specifically meant for countries under the World Bank and the International Development Association (IDA) countries.

This is just as the Consulate General of People Republic of China in Lagos yesterday assured that they will support Nigeria in whatever way they could to flatten the curve of coronavirus and eradicate the contagious disease from the country.

But information from the World Bank showed that countries under the IDA are those with per capita income below an established threshold of $1,175 for 2020, or those reefed to as ‘blend’ countries.

“IDA countries will have bilateral debt relief beginning May 1. That way, they can concentrate their resources on fighting the pandemic and its economic and social consequences,” World Bank president, David Malpass, disclosed during a virtual conference on the sideline of the ongoing April 2020 Spring Meetings of the World Bank and International Monetary Fund (IMF).

The World Bank boss did not give details of the loan pardon.

He stated that a system would be set up to supervise how the beneficiary countries utilise the funds that would be made available to them by the debt relief.

His words: “So if the government saves money by not paying creditors, there is an expectation that they use it for health, education, economic rebuilding, jobs and concrete ways to help the people of their country.

“I take note that in the G-20 meetings, China is supporting the international agreement to allowing moratorium of debt repayments by IDA countries if they ask for forbearance. China is one of the biggest creditors and their participation in that effort.

“There is also within the debt relief initiative, the idea that there will be monitoring and assessment of the debt sustainability of poor countries.

“That process itself will amount to transparency. That’s going to change the way that countries have been lending into the developing world and it will improve it substantially and there will be a big benefit even to the creditors.

“It’s not the best system for creditors to be making non-transparent loans into poor countries and this is going to improve the system”.

Malpass noted that if the government saves money by not paying creditors, there is an expectation that they use it for health, education, economic rebuilding, jobs and concrete ways to help the people of their country.

“It’s not the best system for creditors to be making non-transparent loans into poor countries and this is going to improve the system,” he added.

Meanwhile, in a bid to give credence to their resolve to back the country in its fight against Coronavirus pandemic, the Consulate General of Peoples Republic of China in Lagos, the Overseas Chinese Association in Nigeria and AfricaMed Group presented a cheque of N35, 380, 000 to Lagos State government.

They also donated items such as ventilators, facemasks, overall clothing gloves, thermometers hand sanitizers worth N175 million to the state government.

Speaking on behalf of the Consulate General, the Chairlady of Chinese Women in Nigeria, Zhou Jun, said they were determined to ensure that the country comes out the present challenges posed by the ravaging effects of the pandemic stronger.

The Consulate, in a Letter addressed to Governor Babajide Sanwo-Olu, stated: “With the Corona virus spreading around the world, nations such as Nigeria are battling with this new pandemic and its attendant health, social and economic catastrophic effects, it has become mandatory that we work collectively to overcome this upheaval.

“With this in mind, the Chinese Consulate General in Lagos setup an initiative to Chinese-funded enterprises in Nigeria, Chinese communities and Chinese compatriots in Nigeria to come together to show support to the good people of Lagos State.

“Viruses have no borders and are a common challenge faced by all mankind. China and Africa are a community of shared destiny, and helping African countries fight the pandemic is the proper meaning of China-Africa friendly cooperation.

“We are therefore committed to ensure we join His Excellency and his team to fight and completely eradicate the COVID- 19 virus from Lagos and Nigeria as a whole. Nigeria is our second hometown”.

The consulate said they remained committed to long term partnership that would engender continuous growth of the state.

Receiving the items, Lagos State commissioner for Transportation, Dr Frederic Oladeinde, said the state government appreciated the efforts of the Chinese to flatten the curve of coronavirus pandemic and defeat the deadly disease .  (Leadership)