Source: CCTV News Client
On October 15th local time, the World Bank chief economist said that the new crown pandemic is evolving into a major economic crisis and warned of a possible financial crisis.
World Bank chief economist Carmen Reinhardt said: "This did not start as a financial crisis, but it is turning into a major economic crisis with very serious financial consequences. There is still a long way to go."
When asked whether central banks buy bonds to keep yields low, Reinhardt said: "It's a war. During the war, governments did everything they could to fund their war expenses, and there is an urgent need now."
World Bank called for one year to extend the debt relief period for the world's poorest countries amid the pandemic, and the richest countries agreed to extend the debt relief period for at least six months.
Reinhardt said about half of the poorer countries are trapped in "debt trouble." She added that the "vulnerability" of low-income countries and emerging markets is much greater than that of developed economies . Although emerging markets have proven to be the "highlight" of the 2008 crisis, "this certainly will not happen at this stage. This is indeed a global crisis." (CCTV reporter Xu Tao)
