The World Bank president, David Malpass, has raised serious concern over some of the loans China has been providing to developing nations, especially Africa.

Malpass raised the concern during an interview with the BBC on Saturday April 1, 2023. He noted that the terms and conditions of the loans need to be “more transparent.”

While questioning the transparency of the loans, Malpass, who will step down in June, wondered how struggling nations like Ghana and Zambia will pay their debts to China

According to the Chinese government, however, all such lending complies with international laws.

Borrowing money from other countries or multilateral organizations is a common practice in developing countries to fund economic growth-oriented industries like infrastructure, education, and agriculture.

Interest rates have jumped up in many developed nations in recent times, therefore making loan repayment more difficult because much of the borrowings are in foreign currencies such as US dollars or Euros.

In recent years, China has emerged as one of the major providers of loans to developing nations.

A study from the Kiel Institute for the World Economy, between 2016 and 2021, 22 countries received bailout loans from China totaling $185 billion.

With 189 member countries, the World Bank Group is a unique global partnership fighting poverty worldwide through sustainable solutions.

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