W’Bank lists Nigeria among 10 countries with high debt risk exposure

The World Bank listed Nigeria among the top 10 countries with high debt risk exposure.

  This was revealed in the financial statement for International Development Association (IDA), which was among the World Bank FY21 audited financial statements released on Monday, August 9.

Nigeria was rated fifth on the list with $11.7bn IDA debt stock. India is on the top of the list with $22bn IDA debt stock, followed by Bangladesh with $18.1bn IDA debt stock, Pakistan with $16.4bn IDA debt stock, and Vietnam with $14.1bn IDA debt stock.

 

Other countries on the list include Ethiopia at number 6 with $11.2bn IDA debt stock, Kenya with $10.2bn IDA debt stock, Tanzania with $8.3bn IDA debt stock, Ghana with $5.6bn IDA debt stock, and Uganda with $4.4bn IDA debt stock.

 

 The financial statement reads in part: "IDA faces two types of credit risk: country credit risk and counterparty credit risk.

"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."

 

 It stated, "As of June 30, 2021, the 10 countries with the highest exposures accounted for 66 per cent of IDA’s total exposure."

 

Nigeria’s undisbursed balance with the World Bank is about $8.656bn as at June 30, 2021.