World Bank chief warns of debt default deadline

by **Bama Diva** Sun 13 Oct 2013, 3:40 pm

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World Bank chief warns of debt default deadline

by Bama Diva Sun 13 Oct 2013, 3:40 pm

World Bank chief warns of debt default deadline

13/10/2013 | 10:02 AM

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World News

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World Bank chief warns of debt default deadline Text-size-plus

WASHINGTON, Oct 13 (KUNA) -- World Bank Group President Jim Yong Kim stressed here Saturday that the closer the U.S. gets to the debt default deadline the "greater" the impact will be for the developing world.

At the closing press conference of the annual International Monetary Fund (IMF)-World Bank Meetings, Kim stressed that "we are now five days away from a very dangerous moment," referring to the failure to raise the nation's debt ceiling by October 17.
He urged US policymakers "to quickly come to a resolution before they reach the debt ceiling deadline," saying "the closer we get to the deadline, the greater the impact will be for the developing world." He warned that "inaction could result in interest rates rising, confidence falling, and growth slowing." "If this comes to pass, it could be a disastrous event for the developing world, and that in turn will greatly hurt the developed economies as well," he affirmed.

"I urge US policymakers to avert this potential crisis," Kim remarked.

Meanwhile, the World Bank chief noted that for the first time in the history of the organization, they have a strategy "that leverages the strengths of our entire organization, which provides risk guarantees and aligns all our work for a common purpose." He indicated that "that common purpose is our two goals to end extreme poverty by 2030 and to boost shared prosperity of the bottom 40 percent of the population in all developing countries." "Across our institution, we will make decisions that allow us to be more selective and to choose more transformative projects that help countries and regions reach their priorities," he remarked.

He also highlighted "one major shift that comes from our strategy," noting "we will become more of a game-changing catalyst that draws billions of dollars of private sector capital into poor countries; countries that have had a difficult time attracting the kind of investment that creates good jobs." He added that "our strategy calls for more investment in fragile states, and it also calls for working on a variety of fronts to combat climate change; and to improve health and education systems, especially for the benefit of girls and women." "In the coming months and years, the world will see a renewed and revitalized World Bank Group, one that rigorously works to end extreme poverty and boost shared prosperity," he remarked. (end) si.mt KUNA 131002 Oct 13NNNN

http://www.kuna.net.kw/ArticleDetails.aspx?id=2338832&Language=en