World Bank lists Nigeria and nine other countries with high debt risk

The World Bank has stated that Nigeria is among the top 10 countries with high debt risk.

This was stated in the International Development Association’s financial report, which was added to the World Bank’s audited financial reports for Jan.

The financial statements state: “IDA is exposed to two types of credit risk: country credit risk and counterparty credit risk.

“Country credit risk is the risk of loss that arises from a country failing to meet its contractual obligations, and counterparty credit risk is the risk of loss that arises from a counterparty failing to meet its contractual obligations.

“IDA is exposed to both commercial and non-commercial counterparty credit risk.”

It says: “As of June 30, 2021, the 10 countries with the highest engagement accounted for 66 percent of IDA’s total engagement.”

Nigeria was ranked fifth on the list with $ 11.7 billion in IDA debt, while India was ranked fifth with $ 22 billion in debt.

Other countries on the list, in order of appearance, were Ethiopia, with $ 11.2 billion in IDA debt, and Kenya, with $ 10.2 billion.

It added that IDA had a single borrower limit that had been set at $ 45 billion for FY22 (25 percent of equity of $ 180.9 billion as of June 30, 2021).

It was also found that Nigeria’s undisbursed balance with the World Bank is approximately $ 8.656 billion as of June 30, 2021.

According to the International Bank for Reconstruction and Development’s annual accounts, Nigeria has a total of $ 589 million in undisbursed balances consisting of approved but unsigned loans of $ 500 million and a signed loan commitment of $ 89 million.

IDA’s annual accounts show that Nigeria has a total of $ 8.07 billion

The IBRD’s annual accounts show that, although a certain loan amount has been agreed, “the loans are not effective and disbursements do not begin until the borrowers and / or guarantors take certain measures and provide documents”.

A total of USD 1 billion in loans have been agreed between Nigeria and the World Bank IBRD, of which Nigeria’s outstanding loan is USD 411 million.

A total of US $ 19.54 billion in loans have been agreed for IDA, of which Nigeria has US $ 11.47 billion outstanding.

According to the Debt Management Office, Nigeria owes the World Bank a total of $ 11.51 billion, including $ 11.10 billion in IDA loans and $ 410.23 million in IBRD loans as of March 31.

Other published financial statements included the financial statements of the International Finance Corporation and the Multilateral Investment Guarantee Agency.

In a press release titled “World Bank Group Releases FY21 Audited Financial Statements,” the bank announced that the World Bank Group’s commitments rose to $ 84.3 billion in FY2021, 15 percent more than in FY20.

In the statement, the President of the World Bank Group, David Malpass, was quoted as saying, “The support from the World Bank Group’s customer countries has increased to US $ 157 billion in the past 15 months to address the increasing poverty, inequality and the effects of COVID- 19 to fight. ”

He added that the unprecedented commitments have helped countries strengthen health systems, protect the poor and the vulnerable, support jobs and businesses, fuel economic growth and lay the foundation for green, resilient and inclusive recovery.

Copyright PUNCH.

All rights reserved. This material and other digital content on this website may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part, in whole or in part, without the express written consent of PUNCH.

Contact: [email protected]

Comments are closed.