Developing countries facing the debt wall

by time news

2023-12-15 18:17:41

Par Anne Cheyvialle

Published on 12/15/2023 at 5:17 p.m., Updated on 12/15/2023 at 5:17 p.m.

Over the last three years, ten countries have recorded 18 payment defaults. 610884671/chaylek – stock.adobe.com

DECRYPTION – They are experiencing both rising costs and mistrust from private investors, warns the World Bank.

Covid pandemic, war in Ukraine, soaring food prices, rising interest rates… Developing countries are paying a heavy price for this succession of shocks, caught in a spiral of excessive debt which will weigh on their future growth. A World Bank report points to the record amount of $443.5 billion paid in 2022 by low- and middle-income states to meet their deadlines, an increase of 5%.

Over the last three years, ten countries – including Argentina, Ecuador, Ghana, Lebanon and Sri Lanka – have recorded 18 payment defaults: this is more than in the last two decades, specifies the institution multilateral. And next on the list could be Ethiopia, already engaged in a debt restructuring with bilateral creditors, which announced this week that it could not meet a bond repayment. More than 60% of low-income countries are at high risk of debt distress or are already…

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