The World Bank has listed Nigeria and nine other countries as nations with high-debt risk exposure.
In a financial statement for the International Development Association (IDA) released on Monday, August 10; the World Bank pegged Nigeria at number five with a $11.7b IDA debt stock.
“As of June 30, 2021, the ten countries with the highest exposures accounted for 66% of IDA’s total exposure,” it explained in the document.
“IDA’s largest exposure to a single borrowing country, India, was $22 billion as of June 30, 2021. Monitoring these exposures relative to the SBL, requires consideration of the repayment profiles of existing loans; as well as disbursement profiles and projected new loans and guarantees.”
India tops the list with an IDA debt stock of $22b. Bangladesh – with $18.1b – is second and followed by Pakistan ($16.4b), and Vietnam with $14.1b, according to the World Bank document.
Ethiopia, Kenya, Tanzania, Ghana, and Uganda complete the top 10 list in that order.
“IDA faces two types of credit risk: country credit risk and counterparty credit risk,” the World Bank further explained.
“Country credit risk is the risk of loss due to a country not meeting its contractual obligations; and counterparty credit risk is the risk of loss attributable to a counterparty not honoring its contractual obligations. IDA is exposed to commercial as well as noncommercial counterparty credit risk.”
As of September 2020, Nigeria had taken a $31.98b worth of loans from the World Bank Group, International Monetary Fund (IMF), African Development Bank (AfDB), according to the Debt Management Office (DMO).
Meanwhile, the high commissioner of Indonesia to Nigeria, Usra Harahap has justified the assault carried out by immigration officials on a Nigerian Diplomat in the country on August 7.
1st News had reported that a video trended on social media showing the diplomatic official simply identified as ‘Ibrahim’ screaming for his life as two immigration officials in Indonesia assaulted him. One pinned his head to a car headrest while the other squeezed his throat.
The video generated a massive outcry causing Nigeria to recalls its ambassador and the diplomatic officer.
