IMF, World Bank Begin Push to Swap Debt Relief for Green Projects

The idea of forgiving debt held by poor countries in exchange for “green” investments gained ground this week during the spring meetings of the IMF and World Bank, with concrete proposals expected in time for a global climate summit this fall.

Low-income countries face a double crisis — they are under pressure to pay down their debt while also confronting environmental problems. That makes them “highly, highly vulnerable,” Kristalina Georgieva, managing director of the International Monetary Fund, said this week, adding that it thus “makes sense” for the world to pursue so-called “green debt swaps.” A World Bank spokesperson underscored that point.