WASHINGTON (Reuters) – Both private and public sector initiatives are needed to help the world’s poorest countries deal with pandemic-related debt challenges, the Institute of International Finance, which includes over 450 banks, hedge funds and other global financial firms, said on Thursday.

In a letter to the World Bank, International Monetary Fund, OECD and Paris Club, the group welcomed a proposal from the World Bank and the IMF calling on official bilateral creditors to suspend debt payments for the poorest countries, if asked.

It said both official and private creditors should commit to debt payment forbearance for those countries for a specific period of time, without waiving payment obligation, adding that all types of private creditors and obligations should be treated alike, regardless whether they are foreign or domestic.

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