World Bank Calls for More Help for Poor Countries.
VAUSE: Negotiations on a second coronavirus stimulus package will resume on Thursday with the White House hoping for an agreement before the election. Treasury Secretary Stephen Mnuchin is offering increased assistance for both child care and the paycheck protection program. But he wants Democrats to authorize $300 billion already in the Treasury Department account.</s>VAUSE: Meanwhile the head of the International Monetary Fund is calling on private creditors and China to offer increased debt relief in developing countries struggling with the economic fallout from the coronavirus pandemic. CNN's John Defterios is in Abu Dhabi and he joins us live. We talked about this last hour, this divide in what countries have at their disposal, the U.S., the biggest country that has the biggest arsenal, as you like, can decide how much it wants to spend. Other countries don't have that luxury.</s>JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: That's for sure, we have the case of the haves and the have-nots, John, and it is the second wave so it is very difficult for the developing countries, especially those in extreme poverty to cope with this. Then the willingness of the G20 countries to spend more at home and not talking about just abroad. So the message coming from the heads of the International Monetary Fund and the World Bank is don't pull back at home domestically and continue to focus on the world's poorest countries. It's vital. The World Bank put over $25 billion to the developing world. Doesn't seem like a lot of money. Another $12 billion for vaccine distribution. This will be vital when they get access to those. But his warning here in COVID-19, we're not talking about recessions and different economies around the world, John, we're talking about a depression for the poorest countries. Let's take a listen.</s>DAVID MALPASS, WORLD BANK PRESIDENT: For many developing countries and the people in the poorest countries, it is truly a depression, a catastrophic event. And it is continuing to add to the ranks of those in extreme poverty.</s>DEFTERIOS: And the calculation is by the World Bank is at the autumn meetings they will add 150 million people to extreme poverty and that is ranked living on about $2 a day. Or less John. They will not eradicate poverty in 2030 for the sustainable development goals of the United Nations.</s>VAUSE: Right now it seems the industrialized world, the richer countries, are not doing a whole lot to help. These economies in the developing world which are struggling during the pandemic. That seems to be very short term or very short sighted if you'd like because what happens in the developing world during this pandemic, will find its way back to Europe, back to the United States back to Australia and the rest of Asia.</s>DEFTERIOS: Yes, this is my concern, the very beginning of the outbreak, John, back in February when it started to heat up, is that the focus has been domestically, we're looking at about $12 trillion in the G20 spent. Most of that is being utilized, at home. But to think this is a global pandemic and you don't focus on Latin American, Africa, is a mistake. The debate right now within the G20 is they extended debt suspension for another 6 months. You notice I didn't say debt relief. That's where the World Bank and the IMF is suggesting. They will consider it in the next month. So you can suspend your debt, the interest continues to pile up for the world's poorest countries, relief and they're asking China to get to the table. China has been lending money to African and Latin America. They in turn spend it on Chinese infrastructure. That's what's been happening. And now they're suggesting to China, you have to cut the debt going forward. You have to sit at the table.</s>VAUSE: Is it very -- it looks like a whole vicious cycle. They borrow money, they get the debt, they can't pay it back they borrow more. None of it ends up going anywhere. John, I guess we're out of time but thank you. And thank you for watching CNN NEWSROOM. Stay with us. More news in 15 minutes.